Presented by: Amy Stooksbury DENSO Manufacturing Tennessee, Inc. 10/17/2016

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• Introduction

• Our Recycling Program

• Past, Present & Future

• Conclusion

• Questions

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• Tier I Automotive Parts Supplier

• Headquarters in Kariya City, Japan

• 146,000 + Worldwide Associates

• North American Headquarters in Southfield, MI

• 23,000+ North American Associates

• Largest Employer in Blount County

• One of the Largest Auto Parts Suppliers in the

World

• Largest DENSO facility in North America

• Last Year we had 2.4 Billion Dollars in Sales

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New Warehouse

DENSO Family Health Center

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• Prioritize Education, Community Support, Environmental Sustainability & Diversity

CORPORATE SOCIAL RESPONSIBILITY (CSR) ISO 14001 ECO VISON

• Voluntary International Standard • Environmental Management System • Yearly Annual Plans-Focus Landfill Reduction

• DENSO’s Global Environmental Program

• Runs in 5 Year Cycles • Sets Global & Regional Targets • Focus on 4 Indexes- 1 is LF

Our Programs for Source Reduction & Recycling

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2,928

2,627

1,926

758 726

366

151 105 107 113 94 79 93 70.90 9.65 6.53

0

500

1,000

1,500

2,000

2,500

3,000

TONS OF WASTE TO LAND FILL

DMTN Production-Related Landfill Reduction

Tons

99.8% REDUCTION SINCE 2000

Initiated Waste To Energy June 2013

Cardboard

Plastics

Carrier Tape

Education, Impr. Visual Controls & Audits

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Started Sending Carrier Tape WTE

1996- Achieved ISO 14001 Certification

2012- Constructed Eco-Park (work in conjunction with Keep Blount Beautiful and Maryville City Schools)

2015- Achieved 99.8% Production-Related Landfill Reduction

2005- Reduced Production-Related Landfill by 50% from prior year

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2000- Began Eco-Vision Landfill Reduction Activities

2002- Initiated Plastics Recycling

Where We Started 2000

• Didn’t Know How to Recycle • Had to Teach Associates Basic Sorting Knowledge • Difficulty in Finding Vendors that were Recycling • Waste Streams Recycled: -Small % of Cardboard -Metals • Produced 2928 Tons of Production Related Landfill

Landfill Photo From 2006

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• Increased Visual Controls • Increased Number of Containers • Education -Safety, Health & Environment (SHE) Dojo (training all new hires) -Leader College • Landfill Lockdown • Audits/Data Gathering -Dumpster Dives • Improved Sorting Capabilities

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Dumpster Dives

• Weighed box before and after sorting

• 2/3 Recyclables, 1/3 Production-related waste

• Identified Unique Waste Streams

• Identified Opportunities for Improvement

• Communicated Findings to Leadership Chain in Monthly Safety, Health and

Environment (SHE) Meetings

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• Identified Waste Streams -Cross Contaminated/Multi-Media, One-Time Use & Hard To Recycle Items • Reduce Influx of Styrofoam Peanuts-Purchasing Policy-Only Necessary-Replaced w/Air Bags • Returned to Vendor (Refrigerated Gel Packs) • Donated (Gel Packs, Uniform Pants & Styrofoam Peanuts) • Waste To Energy (Aluminum-Coated Reel Bags, Rubber Stoppers, Shoe Covers & Carrier Tape)

Aluminum-Coated Reel Bags Rubber Stoppers Shoe Covers (HDPE)

Refrigerated Gel Packs Styrofoam Peanuts (EPS) Carrier Tape (Paper & Plastic) 11

Purpose:

• Reduce our impact on landfills and produce electricity.

Key Points:

1. Waste to Energy (WTE) is the process of generating energy in the form of electricity &/or heat from the incineration of waste.

2. Wastes that are multimedia (plastic AND paper), not marketable & one-time use are good candidates for WTE because they are labor-intensive to recycle

3. Many different types of wastes are collected at each plant and then commingled in the collection container

4. Almost any solid waste can be sent as WTE except liquids, hazardous materials or glass

5. Reduce, Reuse or Recycle are our first options but WTE is a good alternative

Reason: Reduce the amount of waste we send to landfill and produce energy.

Subject: The benefits of Waste to Energy as a recycling option

Waste To Energy

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• Maintain 99.8% Production-Related Landfill Free

• Invest in Recycling Containers • Improve Line Side Container Visual

Controls

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• RECYCLED (VALUE): -Cardboard = 3,219 Tons -Metal Scrap = 8,607.22 Tons -Plastics = 927.07 Tons • DONATED (NO VALUE): -Wood Pallets = 474 Tons -Aluminum Cans & Plastic Bottles = 15.52 Tons -Paper = 7.48 Tons -Clothing = 1.57 Tons -Styrofoam Peanuts = 1.48 Tons • WASTE TO ENERGY (PAY/COSTED): -Non Recyclable Materials = 201.15 Tons • TOTAL: - MATERIAL DIVERTED FROM LANDFILL = 14,709.34 Tons (29,418,680 lbs.)

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Shift Focus from Landfill to Total Waste Management (TWM)

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• TWM refers to reducing both landfilled and non-landfilled waste including hazardous waste, recycled waste, waste incinerated for energy recovery, and other wastes (every single thing that leaves our campus as a waste).

• Costed Waste is a subset of Total Waste and includes all wastes that incur a net cost for disposal.

• Difficult Mind Set Shift

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Total Waste Costed Waste Landfill

Reduction Targets (%)

Base Year 2014

2014

2015

Annual 2018 2020 2025 3 18 24 34 1.5 7.5 12.5 25

MAINTAIN

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Since Scrap has a Direct Impact to Cost Competitiveness & Profit, it also creates

• Increase in OVERTIME to keep customer supplied • Productivity loss for the Next Process • Negative impact to our reputation with Customers, End Users.

Scrap

History

Top 7 Departments:

* High Copper Content

* Most technical lines

* Historic bottlenecks

* Complex processes

26.8

65.1

8.1

Scrap % By Section

Sta

Alt

Parts

Scrap Has a Direct Impact to S/A Division Profit Total Scrap Dollars for 2015 = $4.3 Millions Dollars !

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Teams With Largest $ Amount and Largest Percentage Reduction (Base line 4th Quarter 2015 + April 2016

minus largest monthly amount) (Cannot be same team)

1. Competition starts June 2016 through August 2016 2. Lunch from Texas Roadhouse for entire team ($20/person limit)

3. Tee shirt from company store with Scrap Project Logo

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Largest $Reduction

1.CST-2 = $71,350 Reduction Largest %Reduction

1.PMO = 72.9% Reduction

Move from 12-15 Recycling Vendors to 1-5 Vendors

Continue to Improve Education & Associate Involvement, especially based on projected growth

Grow Corporate Social Responsibility (CSR) Activities to further involve associates and the community

Develop Environmental Cross Functional Teams at Each Division to Focus on Increased Participation

Create Benchmark Environmental Preferable Purchasing Program

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Contact Information Amy Stooksbury Email: Amy_Stooksbury@denso-diam.com Office: (865)982-7000, ext. 2564 Website: https://https://www.denso.com/global/en/csr/environment_report/management/ecovision/

Thank you for your time

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