Daikin EMEA Cross-Territorial Project Sales Policy
This policy outlines guidelines for coordinating project sales involving multiple EMEA countries to ensure effective collaboration, quality assurance, and client satisfaction. It emphasizes the importance of aligning efforts across different Daikin affiliates and stakeholders to achieve common goals and maintain goodwill within the sales network. The scope includes project sales of Daikin branded products such as VRV, Chillers, Fan-coils, and Air Handling Units within the EMEA territory.
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Internal use only EMEA CROSS TERRITORIAL PROJECTS Applied & VRV Project Sales 2
Internal use only BACKGROUND PURPOSE SCOPE ADVANTAGES PROCEDURE 3
Internal use only BACKGROUND 4
Internal use only BACKGROUND HVAC projects may involve actors coming from different countries, where main decisions are taken in a different country than the country of installation ( Cross Territorial Projects ). Althoughour target should encourage that Products are sold by the local Daikin Affiliate in the country of final destination of the Products, it is not always possible to convince a foreign end-user or contractor to buy locally. In such cases, Daikin needs anyway to ensure quality of Daikin support and service to its customers by proper project coordination across the different EMEA territories. Indeed, lack of coordination could lead to internal competition in Daikin Group and/or lack of proper after sales service, with potential loss of client trust and goodwill within Daikin sales network. Therefore, in case of Cross Territorial Project, which involve two or more EMEA countries, we need to make sure that the involved companies representing Daikin in the different territories would coordinate and work in the same direction for a common goal. 5
Internal use only PURPOSE 6
Internal use only PURPOSE This Policy defines general guidelines on how to run the coordination, when to accrue commissions and which commission amount is expected for project sales of Products in the EMEA Territory by at least 2 Daikin Affiliate/Stakeholder. This is in order to guarantee common interest and rewards based on added value of the involved Daikin Affiliate(s). However, prior and mutually agreed case-by-case additional agreements can be taken amongst the involved Daikin Affiliates. 7
Internal use only SCOPE 8
Internal use only SCOPE As from when is the Policy applicable? The Policy has to be considered as immediately applicable on any new inquiry, from date of issuance Who has to apply this Policy? All Daikin Group EMEA affiliates employees What is the territorial scope of the Policy? All project sales inside EMEA territory For what products is this Policy applicable? For project sales of the following Daikin branded products : VRV, Chillers, Fan-coils and Air Handling Unit 9
Internal use only ADVANTAGES 10
Internal use only ADVANTAGES Maximize the chance of order conversion by understanding project dynamics and working in a collaborative manner across territories to influence decision positively in favor of Daikin. Ensure installation and local project support are Daikin standards and end user satisfaction Share benefit of sale amongst the various sales channels that positively participated and influenced the order Encourage and recognize all efforts done by Daikin representatives to push our Brand name and to contribute to projects awarding through specification work, even when outside of their normal territorial coverage 11
Internal use only PROCEDURE 12
Internal use only PROCEDURE Basic Conditions Local Daikin representative shall be informed in advance of any selling activities happening in its assigned territory from abroad Case 1 Project to be quoted and sold in country A with installation in country B (no involvement of local country B Daikin Affiliate) Case 2 Project specification or involvement of Daikin Affiliate in country A but order placed at country B as well as installation in country B Case 3 Project to be quoted and sold in country A with installation in country B, with specification or involvement from country B Daikin Affiliate Other Cases to be evaluated on project basis with benefit of sale, shared amongst involved actors, on added value base 13
Internal use only PROCEDURE Case 1 COUNTRY A QUOTATION ORDER COUNTRY B INSTALLATION Project to be quoted and sold in country A with installation in country B (no involvement of local country B Daikin Affiliate) Project/Quotation addressers details has to be shared preventively with local entity (Country B) Country B Daikin affiliate shall give its agreement to proceed with abroad Quotation/Sale (Country A) 3% Customer Service Commission shall be considered in the abroad quotation (Country A) Customer Service Commission doesn t cover startup or warranty activity (which remain responsibility of the seller and can in case be subcontracted) Local support requirements has to be agreed and priced upfront 14
Internal use only PROCEDURE Case 2 COUNTRY A SPECIFICATION Project specification or involvement of Daikin Affiliate in country A but order placed at country B as well as installation in country B COUNTRY B QUOTATION ORDER INSTALLATION Local Daikin representative (Country B) shall be informed promptly before tender goes to market Project details, Specification and Designer needs to be shared Daikin Affiliate in country B shall reserve a Specifications Commission in its quotations: up to 6% (*) of total order value, all taxes excluded, in case project specification was built around clear and unique Daikin product features or solution, therefore its influence is very strong and can prevent any change of the specified Daikin model 3% (*) in any other case Daikin brand and/or model is in the specification (*) in all cases, it can be negotiated amongst parties, if needed to increase project price competitiveness 15
Internal use only PROCEDURE Case 3 COUNTRY A QUOTATION ORDER Project to be quoted and sold in country A with installation in country B, with specification or involvement from country B Daikin Affiliate COUNTRY B SPECIFICATION INSTALLATION Project/Quotation addressers details has to be preventively shared with local entity (Country B) Project coordination shall be lead by the local representative (Country B) 3% Customer Service commission and 6% or 3% (+) specification commission shall be considered in the abroad quotation (Country A) Territorial commission doesn t cover startup or warranty activity (which remain responsibility of the seller and can in case be subcontracted) Local support requirements has to be agreed and priced upfront (+) See case 2 for specification commission based on specification strength 16
Internal use only PROCEDURE Commission payment Commissions should be always provisioned in the quotations by the Daikin Affiliate getting the order Commission should be then invoiced, among the involved Daikin Affiliates at the time of product invoice to customer, by clearly mentioning the project/order reference and location, as well as details about which kind of activity and/or local support service the commission is covering. Who to Contact The Daikin Affiliate in country A shall take the initiative to inform (and agree the sale in Case 1) the Daikin Affiliate in country B (and keep in cc the related Applied and/or VRV SBU Area Managers). Note that, to avoid any misunderstanding, this Policy should not be interpreted as promoting proactive cross-border sales which is prohibited according to Daikin Europe Group General Trade Control Company Rules but only as a way to handle exceptional cases where Daikin Affiliate would face a specific request from a customer to proceed to a Cross Territorial Project.
Internal use only PROCEDURE Daikin Europe Group Distributors Policy should be intended as an internal document valid for Affiliates in case of cross territorial projects involving distributors, the policy procedure will be similarly valid and adopted distributors will receive instructions according to policy, but on project basis, and directly by DENV distributor sales dept this case refers to Daikin Europe Group Distributor section: In case the Daikin stakeholder, which is going to be involved in Cross Territorial Projects is not a Daikin Affiliate but a Daikin Europe Group distributor, the policy procedure will be similarly valid and adopted but distributors will receive instruction according to policy, on project basis, and directly by DENV distributor sales dept. In this case it should be also noted that: If country B has presence of more than one Daikin distributor, Daikin Europe NV reserves the right for every specific sales project to select the distributor with whom country A Daikin Affiliate shall collaborate; If the Daikin Distributor is in Country A, it has to contact preventively the related VRV SBU and/or Applied Area Managers.
Internal use only Above slides are intended to be a summary/indication, please refer to full documents for complete details: 1) EMEA Cross Territorial Projects Policy 2) Projects coordination form 19
Internal use only THANK YOU
