The document summarizes Haier's presentation on its air conditioning division. It discusses Haier's 5 strategic stages of development including a focus on domestic growth, building its number one brand, internationalization, global branding, and adapting to the internet era. It also outlines Haier's global manufacturing capacity, the historic development of its air conditioning business, its product range, focus on industry trends, and quality assurance system which includes a stage-by-stage quality control procedure and global certifications.

1. Haier AC Presentation
30th July 2014

2. Brief of Haier Group
 Global Manufacturing Capacity
 Historic Development of Haier Air Conditioning
 Product Range
 Industry Trend and Haier Air Conditioning Focus
 Quality Assurance System
Brief of Haier Air Conditioning Division
Contents

3.  5 strategic stages
• Focus on domestic
growth
• Building No.1 brand
through ref. with TQC
system
• Being open
- Internally, organization change from
triangle to reversed triangle structure
- Externally, being fully integrated
horizontally and vertically
- R&D
- SCM
- Production
- Sales & Marketing
• Global brand
building
• Business model -
cooperation aligning
with industry peers
-Global partner,
M&A (SANYO,
FISHER&PAYKEL)
•Three in one
framework in
overseas market•Expanding from
ref. to full line up
of appliances
• Starting export
business
Brand Building
Diversification
Internationalization
Global Branding
Stage of Internet Era
- Localized R&D
- Localized production
- Localized sales &
marketing
Strategic Stages of Haier Group

4. The Internet era is a diverse and unconventional time, where “one size fits all” products and solutions simply aren’t
enough. Customers want to be treated as individuals and respected for who they are.
Everyone wants their unique lifestyle acknowledged . That is why Haier listens closely to you in order to gain a
genuine understanding of what is going on in your life and what is on your mind. So each of you can get the smart
home experience you deserve: be it simple, sophisticated, organized or enjoyable.
As a worldwide industry leader, Haier innovates beyond products and solutions and turns the organization into a
wholly connected platform. In doing so, internal and external resources are connected quickly and easily. We believe
only by doing so, we can best meet our consumers’ expectations in this rapidly evolving world.
Be part of the Haier Network. Create new possibilities.
Haier Brand Vision in Internet Era

5. Year 2013, Haier total sales reached 29.4 billion USD.
1984… 1991… 1998 … 2005 2006 2007 2008 2009
280
260
240
220
200
180
160
140
120
100
80
60
40
20
0
Unit：USD100 million
128
139
162
175
2010 2011 2012
191
208
232
253
Haier Business Size
294
2013

6. Haier Main Business
Refrigeration
Digital Products
Kitchen & bath room
CAC Real EstateDistribution channel
New energy Financial serviceLaundry
DAC
Medical purpose low
temperature solution
Haier Group Main Business
Consumer
Solution
Commercial
Solution
Service
Solution
Real Estate
Solution

7. Haier Global Network
Haier has built up its infrastructures globally to meet the customers’ quickly evolving demands, including R&D
centers, production facilities, trading companies and sales networks etc.
Haier’s five R&D centers around the world have forged strategic partnerships with first-class suppliers, research
institutions, and prestigious universities to create an innovative ecosystem composed of internal and external
scientists and engineers connected by virtual and physical networks.

8. Brief of Haier Group
 Global Manufacturing Capacity
 Historic Development of Haier Air Conditioning
 Product Range
 Industry Trend and Haier Air Conditioning Focus
 Quality Assurance System
Brief of Haier Air Conditioning Division

9.  A history of technology innovation & global business expansion
Historic Development of Haier Air Conditioning
 Qingdao Qingkong Air Conditioner Factory
 China 1ST split air conditioner
 Qingdao Qingkong Air
Conditioner Factory was
merged by Haier Group
 Haier introduced the 1ST
inverter air conditioner in
China
 Haier got ISO9001
Certificate by DNV
 In the same year, Haier
acquired its 1st export
business to Italy
 Introduced 1st
DC inverter air
conditioner in China
 EPA released
energy star to Haier air
conditioner
 Starting export to
Japan
 DC inverter with
R410A technology
 Introduced intelligent
air conditioner with the function
of security, monitoring and
management functions.
 Focusing on indoor
air quality features,
introducing the
models with
formaldehyde
elimination function
and PM2.5
elimination function
1985
1993
1994
1998
2000
~
2003
2010
2011
~
2012
2013
~
2014
 Launching WI-
FI air conditioner
in China, Italy
and South Asia
 Keeping 15%
market share in
America for WAC
and acquiring
Top Five
ranking in market
share in Italy
Innovation &
Globalization

10. Industry Trend and Haier Air Conditioning Focus
① OVERSEAS EXPANSION
Expand overseas business, increasing the contribution of overseas business to the total sales
for strengthening the competitive power from business scale.
② INTERNATIONAL SUPPLY CHAIN
Focusing on the competitiveness of building up international supply chain
 Globalization
① HUMAN RESOURCES
Open to outside human resources, welcoming specialists from industry
② COOPERATION & COMPETITION
Open to horizontal and vertical cooperation aiming to synergize business strengths
 Business model – Open minded cooperation with industry peers

11.  Smart solution
Industry Trend and Haier Air Conditioning Focus
① END USERS ASPECTS
② DISTRIBUTORS/INSTALLERS
ASPECTS
③ ENVIRONMENT ASPECTS

12.  Domestically, Haier is running 9 factories, 1 of which is MHAQ, a JV between Haier and Mitsubishi
Heavy.
Total production capacity is19 million sets per year.
Unit: K Sets
JiaozhouQingdao
Dalian
Huangdao MHQAC
Wuhan
HefeiChongqing
Zhengzhou
Global Manufacturing Capacity
Factory WAC Split Unitary Others
Qingdao 0 2,000 0 0
Huangdao 250 0 200 550
MHAQ 0 0 1,000 0
Jiaozhou 250 2,750
Dalian 2,000 0
Wuhan 2,000
Chongqing 3,000
Hefei 2,000
Zhengzhou 3,000
Total 2,500 14,750 1,200 550
RAC CAC

13.  In Overseas markets, Haier is running 6 manufacturing plants.
Total production capacity around 1 million sets per year.
Country Capacity
Pakistan 500
Thailand 240
Tunis 80
Bangladesh 30
Nigeria 100
Algeria 50
Unit:K Sets
Total: 1,000
Global Manufacturing Capacity

14. Product Range
Categories Description Remark
By usage Residential, light commercial and commercial
By space 5~10000㎡
By product group Air treatment, Window, Split, Packaged, MRV & Chilled
water products
By product category Air purifier, dehumidifier, window air-con, split high wall,
cabinet, cassette, duct, US duct, PTAC ,console,
convertible
By refrigerant R22, R410A, R32, R134a
By technology On-off, DC inverter; oil free centrifugal
By climate type T1 &T3
By different energy
efficient standard
A~C class for Latin America
3 star level for Middle East
SCOP and EUROVENT for EU

15. Quality Assurance System
① Full PLM procedure perspective
② Production perspective
③ Field feedback
④ Modulized design (Supplier)
 A stage by stage and closed loop procedure and system for quality control

16. Quality Assurance System
 Investment in hardware for R&D
The user experience center can test split, floor standing, window, convertible, cassette and duct air conditioners,
dehumidifier, chiller and so on, with cooling capacity from 200W to 95000W. The operating condition can be adjusted for
temperature from -25 ℃ to 60 ℃ and humidity from 20% RH to 95% RH (Relative Humidity).
Height drop testing towerAll-weather simulation and user comfort evaluation labAcoustic lab with
operating condition
(SEMI-anechoic)
User experience center has planned 127 laboratories with 76 labs in running already, among which 71 labs are for
CBU testing and 5 labs are for specialized test on parts, including 54 psychrometric labs, 1 calorimeter lab, 1 user
comfort evaluation lab, 3 semi-anechoic labs, 2 EMC labs, 1 heat exchanger lab, 2 compressor labs etc.

17.  Global certifications
Quality Assurance System

18. Thank You