Hitachi Environmental Performance

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1 Hitachi Environmental Performance International Supply Chain Center May 24, 2016

2 Company Description History & Products Eco-Factory Select Energy Efficiency HICAM Business Status Environmental Best Management Practices (BMP)

3 HICAM IDC Overview No. Item Contents 1 Company Hitachi Computer Products (America) Inc. The abbreviated name is HICAM 2 Business locations Main office: 1800 East Imhoff Road, Norman, OK Date of Incorporation 11/29/ Total Capital US 14.0 M$ HICAM is 100% capitalized by Hitachi Data Systems (HDS) Facility Overview Founded in Production began in 1987 in 78,000 ft² building on 70 acre site Plant increased in 1990 to current size of 162,000 ft² Distribution Center (+200,000 ft²) addition to current facility October, 2010 Total Facility 362,000 ft² as of October, 2010 HDS manages Distribution; HICAM manages Manufacturing and provides manpower and facility management for both HDS & HICAM have separate ISO14001 certifications HICAM is responsible for government agency permits, fees, licenses Green 21 and other Hitachi, Ltd reporting is for combined operations

4 Hitachi ISSC Overview Hitachi Computer Products (America),Inc. Norman, Oklahoma HDS-IDC consolidated 2010 Established 1985 Sub Assy South CTO Lab (Config) Final Test Packing for Shipment Final Test Shipping Spare parts Shipping Dock

5 Company Description History & Products Eco-Factory Select Energy Efficiency HICAM Business Status Environmental Best Management Practices (BMP)

6 Eco-Factory Select for FY % Reduction Energy Consumed per Revenue $, 2014 vs 2005 Base Year, FY2005: kl/m FY2014: 0.097kl/M kl = kilo-liter of fuel oil equivalent for electricity & NG

7 Energy Efficiency High efficiency electric chillers replaced gas-fired units Variable speed based on load VFD motors Factory lighting improvement (several generations) T12 fluorescent lights T8 fluorescent Electronic ballasts T5 fluorescent lights with 25% fixtures elimination Future factory & DC lighting Smart LED lighting Programmable Occupancy sensors LED lighting & motion control switches for offices, conference rooms, restrooms Dimmable LED in conference rooms Evaluating LED lamps to replace fluorescent thru-out facility; no ballast is required Energy management system thermostat was programmed with off-shift setback to reduce HVAC demand Spot insulation Roof curbs Roof hatches Tinted, insulated, low-e window glass

8 Energy Efficiency Product test: Specialized testers reduce total test time Reduced test time = reduced energy unit per product revenue Efficient temperature cycling chambers are used Insulated walls, condensers on roof instead of inside factory Maintenance: High efficiency motors, appliances and office equipment are selected when replacement is needed Equipment and boilers are maintained and tuned to keep peak efficiency Employee component Employees turn off lights and PCs when not needed 2010 Building Expansion Received LEED Certified Award Energy Efficiency constructed in

9 Renewable Energy ISCC Electricity Source: >50% of power is generated by wind turbine, purchased from OG&E 716,000 kw-hr/month

10 Company Description History & Products Eco-Factory Select Energy Efficiency HICAM Business Status Environmental Best Management Practices (BMP)

11 Green 21 Team Activity Active Green 21 Environmental Team Members Manufacturing Engineering (Production, Test, Facilities) HR Purchasing IT QA Manufacturing Accounting Planning Distribution Areas of Activity Recycling Waste Reduction Energy Efficiency Freight Reduction Outreach to suppliers (encourage ISO & environmental consciousness) Outreach to community Employee Education Green Tips on company intranet Kids brochure Earth Day & Arbor Day give-away (tree sapling, seeds, reusable water bottle)

12 Green 21 Team Activity Xeriscape garden at lobby entrance Plants suited to local climate Little or no irrigation required

13 Green 21 Team Activity Butterfly Garden Milkweed planted to benefit monarch butterflies Wildflowers & trees planted along highway and detention pond

14 Recycling Weight (lbs.) 6,000,000 SOLID WASTE (Landfill vs. Recycled) 5,000,000 4,801,958 4,000,000 3,187,514 3,361,200 3,000,000 2,817,426 2,166,725 2,000,000 1,356,271 1,000, ,056, , , , , , , , , , , , , , , , CALENDAR YEAR Waste Taken to Landfill Waste Recycled

15 Recycling Cardboard & kraft paper Office paper Plastics #1, #2, #3, #4 Packing Plastic Plastic sheet Bubble wrap Banding Urethane foam Expanded plastic foam Metals Steel Copper & electronics Batteries (all types) Aluminum structure & beverage cans Re-use of wood & plastic pallets Other Printer cartridges Fluorescent tubes Lubrication oil Cooking oil Cell phones Scrap wood and broken pallets (shredded for mulch, playgrounds) Foam & plastic Recycle Prep Area Trash separation RECYCLE? YES Wood & plastic pallets Cardboard

16 Greenovation Awards from Chamber of Commerce 2011 Transportation 2012 Recycling 2013 Conservation & Transportation 2014 Conservation 2015 Recycling Conservation & Recycling

17 Environmental Activity Final FY2015 Green Points GREEN POINT Environmental Collaboration with stakeholders Eco-factories (Recycling of Resources) Environment Management Environmental business supply chain FY2011 FY2012 FY2013 FY2014 FY Green Points Eco-Factories (Prevention of Global Warming) Eco-products Eco-mind 800 ISCC Green Points FY2011 FY2012 FY2013 FY2014 FY2015 Total(GP) Target

18 Promote Earth Day * Arbor Day * Other Annual Tree Seedling Give-Away (promote planting) ANNUALLY 2013 Reusable Eco-Mug Give-Away (eliminate using Styrofoam) Reusable Shopping Bag Give-Away (eliminate using plastic bags) Flower Seed Packet Give-Away (promote planting) Reusable Water Bottle (Healthy Living) (reduce paper or Styrofoam) Herb Seed Starter Give-Away (promote planting) LED Lamps & Canvas Lunch Bag Give-Away (energy conservation, reduce disposable bags) 2016

19 Kennedy Elementary School Outdoor Classroom HICAM created a curriculum for the classroom to provide some fun and educational games and activities (ABC rocks for the younger kids, bamboo kit for geometric shapes and math concepts, compass and map activities, etc.).

20 Hitachi Green 21 Award Received Green 21 Award from Hitachi, Ltd for Kennedy Outdoor Classroom

21 WWF Earth Hour Lights Out Event Participated in Earth Hour Lights Out Event March 19, 2016, 8:30 pm Per lead of World Wildlife Fund

22 BMP: Water Management Water Consumption Cooling Tower Personnel Needs Kitchen, Cafeteria Improvement areas Investigating use of City sewage effluent for cooling tower & irrigation purposes Low flow fixtures, waterless urinals, sensor activated fixtures Future cafeteria is being designed with water conservation in mind

23 BMP: People Involvement Encouraging employees and their families to Reduce, Reuse, Recycle Green Tips on company intranet Brochures for children Arbor Day and Earth Day celebrations Upkeep of Environmental Classroom at local elementary school Warehouse operation policy No Idling policy for trucks at shipping docks to reduce emissions Signage: No Idling 30 Amp electrical outlets provided to keep truck interiors comfortable

24 Hitachi Computer Products (America), Inc.

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