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Environmental Initiatives Towards 2018 Mr. E. Tufet-Opi Vice President Corporate Office, Epson Europe BV, Environmental Initiatives Towards 2018 Mr. E. Tufet-Opi Vice President Corporate Office, Epson Europe BV, Amsterdam, The Netherlands © Copyright Seiko Epson Corporation 200 X

Environmental Initiatives Towards 2018 2 Environmental Initiatives Towards 2018 2

Environmental Vision Towards 2050 The road towards Environmental Vision 2050 Established Environmental Vision 2050 Environmental Vision Towards 2050 The road towards Environmental Vision 2050 Established Environmental Vision 2050 Environmental Initiatives 2018 Established the General Environmental Policy Action 2010 (2006) Declared commitment to eliminating CFCs Founded in Nagano Strong commitment since founding to keep Lake Suwa clean 1942 1988 1998 2008 Foundation The 1 st Environmental Benchmark Year The 2 nd Environmental Benchmark Year The 3 rd Environmental Benchmark Year 2018 2050 3

Environmental Initiatives Towards 2018 In the next ten years Epson will Establish 4 actions Environmental Initiatives Towards 2018 In the next ten years Epson will Establish 4 actions geared toward achieving the goals of "Environmental Vision 2050. " • Developing a business model in which end-user products have a longer service life/durability and ultimately are returned to Epson • Reduce CO 2 emissions at the component manufacturing stage - Develop energy- and resource-saving designs and substitute technologies • Halve the Clean Room energy usage by an expert project team • Initiate restoring biodiversity together with other stakeholders, incl. employees and NGOs 4

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a new business model, longer life and returnable products • Extending the service life of products, • Seek to build a business model that enables an efficient resource cycle. – Product reuse, – Leasing, – Rentals 5

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a new business model, longer life and returnable products • During 2008 Epson will establish collect and recycle programs for all consumable lines – Expand system consumer inkjet cartridges – Expand coverage of system toner cartridges – Establish system for large format inkjet cartridges • Recycling processes will focus on high quality results • Next step is investigate potential of refill 6

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 1 - Developing a new business model, longer life and returnable products New Concept : Epson EC-01 Studying product viability from the market needs and technological possibility ECOLOGIC No cartridge waste Printer Recycled EASY No hassle to change ink, keep ink supplies, no future ink cost ECONOMIC Low Cost per page 7

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction: miniaturization at component manufacturing Lamp       ・Miniaturization of lamp Exterior case ・Low specific gravity material Transition of the mass per luminosity 0. 225 0. 095 0. 072 Power supply ・Miniaturization Optical Engine ・Miniaturization ・Low specific gravity material 0. 063 Weight/100 lm 8

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction – energy saving design Power Consumption of Energy-Saving Design Printers (per day) Total power consumption in one day = Power consumption at working + Power consumption at stand-by Power consumption at sleep + mode + Turn-off power consumption / Power on: 8 hours, Power off: 16 hours 9

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction: improvements through life cycle thinking 10

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction – size reduction and improvement of packaging efficiency Packaging Efficiency = Packaging Volume (cm 3) / Product Volume (cm 3) Stylus Scan 2800 Stylus Photo Stylus Photo RX 600 RX 620 RX 640 RX 580/RX 590 RX 585 /Epson 1000 ICS CX 5200 11

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction – substitute technology Flat panel vs. Projectors : power consumption vs Flat panel television 60 -65” = 500 -700 W !! EPSON typical business projector: 248 W Substituting technology can create huge energy savings (>33%) 12

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction: substitute technology Industrial textile printer : Robustelli S. r. L - Monna. Lisa Inkjet technology compared to conventional technology* 75. 5 % reduction of water use | 40. 7 % reduction of energy use * Source: LIUC University (Italy) 2008 13

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 2 - CO 2 reduction: substitute technology Electronic paper could supplement printer fleets – – – Ultra-low power consumption Highly portable (180 x 120 mm), thickness: 3 mm, weight: 57 g Refresh images 1, 400 times with a single button battery (CR 1220) High-speed refresh (0. 7 seconds) A 4 and A 6 size 14

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 3 - Reduction of Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 3 - Reduction of clean room energy usage • Clean rooms are the Epson’s largest source of CO 2 emissions, accounting for about 40% of total emissions. • 10 year plans will focus on 50% reduction – Reducing number of clean rooms – Reducing size of clean rooms – Improving energy efficiency of clean rooms 15

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 3 - Reduction of Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 3 - Reduction of clean room energy usage • Saving energy by reducing the space and operating time required • Improving efficiency of facilities and equipment 2018 Approach CO 2 Saving Energy Cut operating time and space by 25% 0. 75 (75% of current level) Efficiency Increase efficiency by 1. 5 times 1/1. 5=0. 67 (67% of current level) 0. 75 x 0. 67=0. 5 (50% of current level) Energy consumption (C 02) 16

Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 4 – Reforestation Initiatives Environmental Initiatives Towards 2018 4 actions towards “Environmental Vision 2050” 4 – Reforestation Initiatives 17

Environmental Initiatives Towards 2018 Restoring Bio-diversity in area destroyed by fire in Portugal • Environmental Initiatives Towards 2018 Restoring Bio-diversity in area destroyed by fire in Portugal • Project would be located in the Centre Interior of Portugal, on the slopes of the Gardunha Mountain • Replant with chestnut and oak, two of the original species that have gradually disappeared • Reintroduce wildlife 18

Environmental Initiatives Towards 2018 European Initiatives: logistics operation • 2007 achievements – Relocation of Environmental Initiatives Towards 2018 European Initiatives: logistics operation • 2007 achievements – Relocation of European Warehouse (reduction of 900, 000 km transport) – Redirect transport from road to rail – Use of double deck trucks (reduced CO 2 impact by 217 tonnes) – Airfreight volume reduced by 50% in 4 years • 2008 will focus on setting Freight(m²) Air long term targets Space volume – Make CO 2 emissions measurable in EMEA logistics operation -40% -60% – Calculate improvements made during last years – Set EMEA logistics reduction targets for 2009 – Reduce warehouse space by 40% in 4 years ending in 2009 – Asia - customer direct shipment: increase from • 4% in 2007 to 10% in 2008 19

Environmental Initiatives Towards 2018 European Initiatives: Advisory Board • Set up – 2 regional Environmental Initiatives Towards 2018 European Initiatives: Advisory Board • Set up – 2 regional boards: one for Japan, one for Europe • Aim – Give independent advise and recommendations – On environmental issues, CSR and possibly even quality assurance • Focal points – The implementation of Vision 2050 – And related environmental and CSR questions • Meetings – Held on a regular basis in each region – Annually on a global level • Selection criteria of the members – Knowledge and expertise – Strategic skills in the fields of environment, CSR and beyond • Communication – Internally – Externally (eco governance) 20

Environmental Initiatives Towards 2018 European initiatives: Ink Cartridge production Epson Telford Ltd. • Energy Environmental Initiatives Towards 2018 European initiatives: Ink Cartridge production Epson Telford Ltd. • Energy Saving activities • Reusing waste water • Promoting Site Biodiversity • Segregating & Recycling Waste • Recycling Handling for Local Companies • Working with Local Schools 1996 – ISO 14001 2003 – Energy Efficiency Accreditation 2001 – Achieved Zero Landfill 2007 - refurbishment operation expanded to whole EU 21

Environmental Vision Towards 2050 The road towards Environmental Vision 2050 Established Environmental Vision 2050 Environmental Vision Towards 2050 The road towards Environmental Vision 2050 Established Environmental Vision 2050 Environmental Initiatives 2018 Established the General Environmental Policy Action 2010 (2006) Declared commitment to eliminating CFCs Founded in Nagano Strong commitment since founding to keep Lake Suwa clean 1942 1988 1998 2008 Foundation The 1 st Environmental Benchmark Year The 2 nd Environmental Benchmark Year The 3 rd Environmental Benchmark Year 2018 2050 22

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