Solutions for Sustainability Imaging Systems Group

1. Canon Solutions for Sustainability Imaging Systems Group

2. Agenda • Introductions • Canon Company Overview • Corporate Environmental and Sustainability Initiatives • Product Specific Environment-friendly Features • Questions/Discussion

3. Part I: Canon Company Overview Who We Are

4. Canon in the News… Business Week Best Global Brand Overall ranking 35th Fortune Most Admired Companies Overall ranking 46th Brandweek Customer Loyalty – Copier Ranked #1 More Recognition… Canon Company Overview • Canon was founded in 1937 as a camera company and has since evolved into a global imaging leader. • Canon employed 131,000 people and generated over $39.3 billion in 2007. • Canon maintains more than 200 consolidated subsidiaries around the world. • Canon re-invests approximately 8%-10% of its annual gross revenues back into R&D; $3.6 billion in 2007. • Canon consistently ranks among the US Patent winners – 1,987 patents in 2007.

5. Optical & Other Products Semiconductor systems LCD exposure systems Broadcasting equipment Medical equipment Other products Strength Through Diversification Cameras 25.7% Business Machines 65.5% Digital cameras Digital video camcorders Film cameras Lenses LCD projectors Other products Office Imaging Products 28.8% Monochrome NW MFDs Office color MFDs Full-color copiers Personal PPCs/MFDs Other products 8.8% Computer Peripherals 34.3% LBP and MFP Printers Inkjet printers Inkjet all-in-ones Image scanners Other products Business Information Products 2.4% Document scanners Handy terminals Electronic dictionaries Calculators Other products

6. Canon #1 in Total Copier Market in 2007! Source: Gartner/Dataquest, Feb. 2008 2007 Market Share Highlights • Canon #1 Total Copier Market position (BW + Color) • Canon #1 Total A3 Copier Market position (BW + Color, 11x17) • Canon #1 BW Copier Market position (25 out of 26 years) • Canon #1 BW A3 Copier Market position (11x17) • Canon #2 Color A3 Copier Market position (11x17) • Canon #1 Brand in Fax Market

7. Commitment to Community The corporate philosophy of Canon is Kyosei… "Living and working together for the common good." Corporate Social Responsibility Programs • Environmental Programs • Cultural Diversity Programs • Community Programs • Youth Programs • Educational Programs • Corporate Sponsorships and Events And many more…

8. Part II: Corporate Environmental and Sustainability Initiatives Corporate Environmental Management Structure • Canon Inc. Global Initiatives • Global Environment Promotion System • Canon Americas /USA Environmental Initiatives • Americas Environmental Management System

9. Corporate Environmental Management Structure • Canon Inc. Global Initiatives • Global Environment Promotion System • Canon Americas /USA Environmental Initiatives • Americas Environmental Management System

10. 3 Fundamental Strategies Energy Conservation Elimination of Hazardous Substances Resource Conservation

11. Product Life Cycle Sales/ Logistics Feedback on product performance Collection and Recycling

12. Global Initiatives • Environmentally Conscious Products • Restriction of Hazardous Substances (RoHS) Compliant / Hazardous Substances Control • Energy Efficiency such as International ENERGY STAR • Green Procurement Program • Smart design, i.e. smaller lighter products w/ greater capabilities • Environmental Programs • Toner Cartridge Return Program • Global Warming Prevention and Energy Efficiency • Green Logistics • Environmental Activities and Education

13. RoHS Compliant Products/ Hazardous Substances Control • Restricts the use of 6 Substances, Lead, Cadmium, Mercury, Hexavalent Chromium, Polybrominated Biphenyls, Polybrominated diphenyl ether (flame retardants) • Canon program goes beyond RoHS and prohibits, restricts or controls 26 substances • Canon first to market RoHS compliant Products • All Copiers, MFD’s, Printers, Cameras and Camcorders are RoHS compliant

14. International ENERGY STAR • New International Standards effective 4/07. Results in top 25% policy eliminates 75% of current IE qualified products. US EPA Program begun in 1992 (Canon IE original partner) • Requires Total Electricity Consumption (TEC) and Operational Mode (OM) approach rather than only “sleep” mode’ energy use. • Canon’s approach : compatibility of convenience with energy savings. ie. Quick start and On-Demand fusing. • We recognized TEC most significant part of energy usage in the copy/printing process. Canon’s designs reflect this and incorporated TEC and OM in product development before new standards.

15. Green Procurement • Canon Chairs the JGPSSI (Japan GP Survey Standardization Initiative) and is a recognized leader in GP practices. • JGPSSI collaborated with the US and EU on the Joint Industry Guide (JIG) to provide a uniform vendor form • Comprehensive system of Supplier/product surveys, QC checks and reauthorization (4500 vendors) which encompasses all mfg operations • Global Objective requires Green Procurement System establishment for all Sales Operations and subsidiaries.

16. Resource Conservation • Focus on reducing weight and size in development stage while expanding functions. • ie Color imageRUNNER iRC3380/C3380i are 8% lighter than previous models • Recycle-conscious design • E.g. Reduction in different resins, plastic component identification, easy dismantling, use of common parts and units • Green Logistics (Supply Chain Management) • E.g. Use of SPC techniques as well as product design i.e. small size, less weight more units shipped per load saves fuel, fewer trips, direct to customer shipping, reduction in back shipments, reduction in number of warehouse sites etc. • Vision for 2010 Factor 2 resource efficiency

17. Vision for 2010 “Factor 2”

18. Canon Global Goal • Vision for 2010 • Factor 2: “Double Canon’s resource efficiency” 100 % Fuel 10 Miles 100 % Fuel 20 Miles

19. Company wide Environmental Programs External Corporate Environmental Responsibility Programs Canon Americas/ Canon USA Program Overview

20. CANON AMERICAS ENVIRONMENTAL CHARTER CORPORATE PHILOSOPHY: KYOSEI Achieve corporate growth and development while contributing to the prosperity of the world and the happiness of humankind through the corporate philosophy of Kyosei: All people, regardless of race, religion or culture, harmoniously living and working together into the future. ENVIRONMENTAL ASSURANCE PHILOSOPHY Pursue maximization of resource efficiency and contribute to the creation of a society that practices sustainable development. FUNDAMENTAL POLICIES FOR CANON AMERICAS ENVIRONMENTAL ASSURANCE Canon Americas seeks to harmonize environmental, economic and social interests in all business activities, products and services; offer products with lower environmental burden through innovative improvements in resource efficiency; and eliminate anti-social activities that threaten the health and safety of humankind and the environment.

21. Environmental Charter • What does it mean for CUSA? • It is a commitment our organization has made to show we value the environment and will take actions to minimize the potential for environmental impacts • What does it mean on an individual level? • Individuals should consider the environment when making business decisions • Individuals should take actions to minimize their environmental impacts (such as recycling paper, cans, bottles etc. and minimizing consumption of materials)

22. ISO 14001 A voluntary, global environmental management standard developed by the International Organization for Standardization that defines specific requirements for establishing and operating an EMS

23. -EMS – Environmental Management System EMS: A continual cycle of planning, implementing, reviewing, and improving the processes and actions that an organization undertakes to meet its environmental obligations and attain environmental performance.

24. Canon’s EMS • ISO 14001 Certified July 2007 (CUSA Sales Organization) • Canon currently is one of the largest global certificate holder • 700 facilities covered under the Canon Global Consolidated Certificate. • EMS includes Goals & Objectives for Continuous Improvement of Environmental Performance Goals & Objectives reviewed and approved by top management annually • Requires corporate wide environmental awareness training for all employees • examples CRT / LCD Monitor replacement company wide resulted in 1/3 reduction in energy usage, 99% employees received Environmental Awareness Training, Full ISO Certification for Canon Americas by 2010 (Subsidiaries, and Latin American Companies)

25. Our Environmental Programs • Our programs illustrate Canon U.S.A.’s environmental commitment

26. ENERGY STAR • Currently over 150 Canon Products are ENERGY STAR qualified (printers 100%, MFD’s 88%) • Recipient 2008 ES Award for Promotion of ES Program through Product Labeling • Canon currently holds 10 ENERGY STAR Awards for Technical Innovation,100% Product Line Qualification FAX, Copier Partner of the Year, Manufacturing Partner of the Year etc.

27. WasteWise • EPA Voluntary Program to reduce municipal solid waste and reduce Greenhouse Gas emissions • Canon USA is a Waste Wise Partner since 2000 • Canon established internal waste reduction programs to reduce our solid waste generation e.g. recycling of cans, bottles, paper etc. as a result, our recycling rates have increased by 66% over 2006 levels. • Canon has won 5 Waste Wise Awards for our waste reduction efforts, including cartridge return program collection of over 100,000 tons of material, refurbished over 230,000 various types of imaging products for internal use, just to name a few.

28. SmartWay Transport • Voluntary partnership with Companies and Organizations to improve the environmental performance of their freight operations e.g. full loads, no deadheading, no idle, optimized trip routes etc. • Canon USA is a Charter Partner in the Program • 99+% of all Canon USA shipments use SmartWays Carriers

29. Clean Earth Campaign • Cartridge Return Program established in 1990 • Canon was first in the Industry to provide cartridge return for spent laser printer toner cartridges • 150,000 tons of toner cartridges have been diverted from landfills since program began.

30. Our Environmental Programs • Our contribution to the environmental education • NATURE Series with PBS • Eyes on Yellowstone • Canon Envirothon

31. Clean Earth Crew • Canon U.S.A employees at our facilities across the country volunteer their time for conservation activities involving parks, beaches and nature preserves. Since 1996, Canon employees have volunteered thousands of hours to maintain these public areas.

32. Eyes on Yellowstone • Canon provides funding for the Yellowstone Park Foundation, that supports scientific research and innovative programs to help preserve the world’s first national park for future generations • Allows application of cutting-edge science and technology essential to managing park wildlife and ecosystems. E.g. The Yellowstone Wolf Project uses Canon cameras, in aerial radio-tracking flights as a method to enhance data collection. • Canon also sponsors the new Canyon Visitor Education Center and related websites, “Windows Into Wonderland” and “Greater Yellowstone Science Learning Center”, used by educators and students, it provides information and interpretation of decades of data to show visitors how Yellowstone’s unique land forms affect the animals that inhabit them.

33. Envirothon • Year long program, draws 500,000 High School students nationwide • The Program’s goal is to raise awareness and commitment for the environment • Combines classroom study and field experience in soil/land use, aquatic ecology, wildlife, forestry. • Envirothon is culmination of North Americas largest high school environmental education competition • Five member teams compete in local, regional and state/provincial competitions. • 10 top teams awarded Canon scholarships used towards 2 and 4 year university or trade school tuition.

34. NATURE Series with PBS • Canon has provided corporate funding since 1990 • Produced for PBS by Channel 13/WNET NY • Nature has won over 400 awards including Peabody and Emmy’s • The Series brings the wonders of nature into millions of households and schools across the world.

35. National Environmental Education Foundation (NEEF) • Chartered by Congress in 1990 • NEEF non profit, dedicated to advancing environmental awareness education. • Canon is National Sponsor of the National Environmental Education Week. Canon provides funding and equipment (prizes) • 2007 EE Week which leads up to Earth Day, reached over 3.5 million students

36. Part III: Environment-friendly Features and Recommendations for Cutting Costs Canon imageRUNNER Solutions

37. Resource ConservationFeatures to reduce paper and toner consumption • 2-sided Copying/Printing: • Allows you to copy or print both sides of a sheet • You can set 2-sided Copying/Printing by default via device additional function or printer driver • Image Combination (N-up): • Automatically reduce up to eight originals to fit onto one side or both sides of a selected paper size. • Eliminate Banner Page Printing: • Instantly save paper and toner costs by disabling this feature. • Default to B/W printing: • Reduce unnecessary printing of color pages by setting B/W as default. • Fast Facts… • According to Gartner, organizations can reduce annual paper costs by at least 30% by selecting duplex printing as the default setting across the output fleet. • According to Gartner,a 1,000-person organization could eliminate up to 1.6 million pages and save $33,500 per year by eliminating banner page printing.

38. Resource ConservationFeatures to reduce paper and toner consumption • Toner Saving Mode: • Reduces toner saturation on prints and copies. • Print Preview: • Ensures pages are printed corrected and eliminates reprinting of pages • Mailbox / PIN Printing: • Stores print jobs in memory until user retrieves documents via a PIN number. Keeps documents secure and eliminates reprinting pages that are unintentionally taken away by others. • Merge Jobs Mode: • Combine and from different applications and sources for output as one compound document. • Fast Facts… • According to Gartner, reducing the density of toner by 10% - 20% can reduce per-page costs by 5% - 10%, or $6 to $10 per user, per month.

39. Resource ConservationFeatures to reduce paper and toner consumption • User Authentication/Access Management: • Settings which allow Administrators to control device access and usage by Department or individual user. Set page limits, enforce 2-sided printing, restrict/allow color printing, etc. • Some examples include: • Department ID Management • Access Management System • imageWARE Accounting Manager

40. Resource ConservationFeatures to reduce paper and toner consumption • Document Distribution features: • No need to exchange hard copy documents – scan paper documents and send them to one or multiple recipients via fax, e-mail, or I-fax, • The ability to send documents to FTP, SMB, NetWare, and WebDAV file. • Fax Forwarding • Automatically route incoming fax documents to other destinations such as file folder, email address, etc., without printing them. • PC Fax • Send faxes directly from your computer using a Fax Driver without printing a document and scanning it at the MFP.

41. Energy EfficiencyTechnology to use energy more efficiently • imageCHIP System Architecture: • Designed to make maximum use of power when it is needed. • Reduces power consumption in Sleep Mode to 1W on BW iR devices and 3W in Color iR devices. • Rapid Fusing Technology: • On-demand fixing technology which utilized a special fixing film and ceramic heater that can heat up instantaneously • Induction Heating (IH) Technology: • IH fusing quickly ensure fast heat conduction, drastically reduce warm-up times and cut energy consumption by 70% RAPID Fusing System • Quick Fixing (QF) Toner: • QF toner has enhanced melting characteristics to fuse quickly at a low temperature which helps to lowers power consumption Induction Heating System

42. Energy EfficiencyTechnology to use energy more efficiently • Low Power Mode Time: • The Low-Power mode conserves energy by turning OFF the fixing unit and the touch panel display, when the machine is idle for a certain period of time. • You can set the Low Power Mode Time to 10, 15 (default), 20, 30, 40, 50 min., 1 hour, 90 min., 2, 3, 4 hours. • Auto Sleep Time: • If the machine is idle for a certain period of time, the control panel power switch automatically switches OFF to save power. • You can set the Auto Sleep Time to 10, 15, 20, 30, 40, 50 min.,1 hour (default), 90 min. 2, 3, 4 hours. • Energy Saver Mode: • The temperature of the fixing unit is lowered by pressing Energy Saver Key on the control panel, which enables you to conserve electricity. • You can set the energy saving level to -10% (default), -25%, -50%, or None.

43. Other Recommendations • Right size your fleet • Four single function devices have a significantly greater electrical footprint than a single a multifunction device. • A high end-user to device ratio is representative of an efficient device plan based upon shared resources. • Implement a print management program • Utilize a device monitoring and tracking system. • According to Gartner, actively managing a print fleet can lead to a reduction of 10% - 30% in recurring spending on document output. • Consider leasing versus purchasing equipment • Ensures the latest technology is being used and equipment is in optimum running condition. • Equipment collected at end of lease can be used in recycling/refurbishing programs.

44. Thank You