SHARP APPLIANCES (THAILAND) LTD. (SATL)

ENVIRONMENTAL REPORT 2015.

Contents

Managing Director’s Comment……………………….........................4 Summary of the Company’s Business……………………………………..6 Environment Policy……………………………………………………………….. 8 Environmental Management Systems…………………………............10 Environmental Impact and Reduction Measures2014……………..11 Environment Objectives and Targets 2014……………………………….12 Environmental Social Contribution Activities 2014, 2015…..…….21

Period and Item Covered Period covered : Fiscal 2014 (From April 1,2014 to Mar 31,2015) Coverage : Factory Facilities Environment of SATL

PROFILE OF SATL

ENVIRONMENTAL REPORT 2015.

Management Director’s Statement

Our generation’s mission is handing over the nature and environment to the next generation. In order to achieve this, even the thing which individual or one of the company can perform is limited, if everyone does not accumulate from the small things, we cannot really achieve. Under Sharp company-wide environmental policy called "Increasing Green Share Value", all production bases and sales subsidiaries, share efforts for natural and environmental conservation. SATL, as one of the main factories producing Sharp electric appliances products, have started operation since 1987. We are now supplying products to more than 100 countries and regions, focusing on Southeast Asia. Currently for contributing to our products, our production activities and local society ,we effort to natural and environmental conservation in a various way. For example, Refrigerators and Air-conditioners produced at our factory are being focused on the type of inverter technology with low power consumption.

In addition, our new refrigerator factory, which started operation in 2011, captures maximum volume of natural South wind with convection of the jet fans installed on the North side. We are significantly reducing the power consumption of air conditioning. We are going to steadily enhance activities with all employees, such as those described in this report. I have seen dry areas like desert before. At that time, I fully realized the importance of water and the green of trees. SATL is in Thailand where is blessed with water and green .But precisely because is blessed ,it might be difficult for people live in Thailand to realize its importance Therefore, we are carrying out environmental education for employee from the year 1999, and from the year 2012, we have carried out the environmental education for local elementary school students, who will be responsible persons as the next generation. Hereafter, our company will continue reducing even a little burden on the nature and environment by accumulating the steady activities. Everyone can start from the things around yourself. Let's hand over this wonderful nature and environment to the next generation together.

Management Director’s Statement

Summary of the Company’s Business

Location : 64 Moo 5, km 37

Bangna- Trad Rd.,

Bangsamak, Bangpakong;

Chachoengsao 24180

Thailand

Establishment date : 23rd January, 1987

Main product : Health & Environment

System Products such as Microwave

Oven. Refrigerator, Air Conditioner,

Humidifier, Washing Machine ,

Air purifier Area : 266,990 M2

Building area : 161,499 M2

Worker : Approx. 3,500 persons

Organization of SATL

PRODUCT GROUP PRODUCTION A/C, M/O, PP.EXECUTIVE DIRECTOR Director GM / SNR MGR

M/O ENG.GM

R/F ENG.GM / SNR MGR

A/C & PCIGM

QRCC & W/M W/MDIRECTOR GM

QRCC GM / SNR MGR

PROCUREMENT / SALES PLANNINGPROD. CTRL./ PART CTRL./ GM

EXPORT OPERATION /SALES PLANNING

DIRECTOR

DIRECTOR FUC.ADMINISTRATION & HR & G/A

GENERAL MANAGEMENT GM / SNR MGRENERGY MANAGEMENT

FFE.

FACTORY CONTROL

(FUC+FFE)

Managing Director

ENVIRONMENT POLICY OF SATL

ENVIRONMENTAL REPORT 2015.

Environment Policy Sharp Appliances (Thailand) Ltd.(SATL),a manufacturer of consumer electronic and electronic products such as Microwave Oven ,Superheated Steam Oven,Refrigerator,Air conditioner ,Washing Machine,etc. which internationally reliable located at Chachoengsao Province; is pursuing the basic

environmental philosophy of Sharp Corporation Creating an Environmentally Conscious Company with Sincerity and Creativity " SATL continues to put every effort to develop environmental protection systematically in consistent with Sharp Environmental Policy and Eco-Positive strategies. SATL is committed to 1. Conducting the business and operation in compliance with the applicable

environmental legal and other related requirements to environmental aspects. 2. Reducing the use of environmental impact substances to its products and its

production activities. 3. Reducing wastes generated and final disposal wastes by enhance and improve

recycling and re-use. 4. Reducing greenhouse gas emission by reduction of energy consumption. 5. Promoting of environmental awareness to its employee and diversify environmental social contribution activities. SATL shall communicate this policy to all persons working for or on behalf of SATL, implement and maintain the environmentally conscious performance for

sustainable society.

Environment Management Systems

SATL is authorized ISO 9001, ISO 14001 & OHSAS 18001

Environment Impacts and Reduction Measures 2014

Compliance with environment regulation Air Emissions

(No.) (Place) (Type of pollution) (Std. and Limit) Frequency year 2014

sample date Result

1 Boiler CO 690 ppm 12M

Closed system SO2 60ppm 12M Do not operate Cap :1ton/Hr NO2 200ppm 12M Qty :2 units TSP 320mg/M3 12M

2 Paint stack CO 690 ppm 12M 07-Feb-14 1

Open system SO2 60ppm 12M 07-Feb-14 <0.1 Cap :1 HP NO2 200ppm 12M 07-Feb-14 3

Qty :1 units TSP 320mg/M3 12M 07-Feb-14 4

Boiler stack Paint stack

*Refer :The notification of Ministry of Industry,B.E.2549(2006) under the topic of “The polluted Air Emission from Factory “

**Monitored by Measured by a third party.

due to changed process

Environmental Objectives and Targets 2014

Objectives in Fiscal 2014 Achievement in Fiscal2014

Self Evaluation

1. Contribution to reduce of CO2 emission by reduce electrical consumption and LPG fuel by 2% 1.1. Change all street lamps to LED type 1.2. Reduce LPG for boiler at part production control 1.3. Reduction Diesel oil consumption by stop use forklift 4 units. 1.4. Reduction Electricity for reach truck and forklift

1.1 . Had changed lamp to HPS total 19 sets target on Mar 15 .Can reduce electrical = 15,755 kw-hr/year . 1.2. This activity could not be carried due to part production cancel use chemical fuel on Aug,14 1.3. Deisel oil reduce 7.5% vs FY2013 1.4. Stop use 3 forklift & 3 reach for truck reduce electricity

Increase 8.9 % (unit : ton/kman-hr)

Total Emission

Co2 FY2014 VS

FY2013

2. Reduction of industrial and general waste 5% by 2.1. Reuse packing material 2.2. Reuse wood pallet 2.3. Collect PET bottle and sent to donation & recycle company.

2.1. Packaging paper reduce from 1,028.4 ton to 939.6 ton reduce 8% 2.2. Wood pallet reduce from 212.9 ton to 104.6ton reduce 50.8% 2.3. Collect PET bottle from Dec 14 to Mar 15 total = 1,661 kg.

Reduce 3.0% (unit : ton/kman-

hr)

Total waste FY2014 VS FY2013

Environmental Objectives and Targets 2014

Objectives in Fiscal 2014 Achievement in Fiscal2014 Self Evaluation

3. Environmental education by 100% of employee have to pass Energy saving & environment conservation class.

3. SATL have been trained in fiscal year 2014 to all new employees.

100%

4. Information disclosure & Social contribution activities 4.1. Participate green industry program level 4 4.2. Environment information disclosure to public and local office

4.1. SATL’s sent environment &CSR report to registering in Ministry ‘s program to be a Green Factory level 4 in Mar ,15 4.2. SATL’s share environment information to Local office in Aumphor. Bangprakong by attached on local ‘s board.

100%

5. Improve Green area in SATL 5. Planting the tree at SATL Coole3 total 40 trees. And in front of building 1 ,canteen

100%

6. Strengthen Environment awareness of employee 6.1. Improve 2 old waste trucks to be the good looking for promote the environment awareness

6.1. Renovated new waste trucks to be a good looking by promote separation waste (hazardous ,Recycle, general)

100%

Environment Impacts and Reduction Measures 2014

SUMMARY ENERGY SAVING MEASURE 2014

Energy measure (kW) (kWh/Y) Process term

1) Change Street Lamp to LED 19 Unit. 3.65 15,755 March-May 2014

2) Reduce Reach Truck 7 Unit. - 25,200 April-July 2014

3) Reduce Electric Forklift 8 Unit. - 28,800 April-July 2014

4) Reduce Engine Forklift 5 Unit. - 12,000 Liter April-July 2014

Change Street Lamp to LED 19 Units

Environment Impacts and Reduction Measures 2014

Environment Education

Training Course Training period Participants

1.Safety & Occupational health and Environment ,and energy conservation for new employees.

Apr 14-Mar 15

*Anytime to all new employee

2.Gas leakage training (1Day) Apr 14-Mar 15 171 Pers.

3.Energy responsibilities &management by laws (1Day)

Aug, 2014 15 Pers.

4.Energy Measure course (1 Day) Aug ,2014 31 Pers.

5.Emergency responding for Diesel oil leakage Oct 31,2014 20 Pers

6.Emergency responding for Cyclopentane & Isocyanate, Polly , R-600 leakage

May 30,2014 25 Pers.

7.Emergency responding for Acid and alkaline leakage

May 29,2014 30 Pers.

8.Emergency responding for Hazardous waste leakage

Aug 23,2014 15 Pers.

CSR & COMPANY ACTIVITIES

ENVIRONMENTAL REPORT 2015.

Safety Talks Safety Training

OHSAS 18001 Audit

Q6S Factory Inspection

Fire Safety Audit

Fire Fighting drill Fire Fighting Training

New Employees :Safety Training

Fire Evacuation drill Chemicals spill drill

SATL celebrate 2014 Children’s Day

Celebrate 2015 Children’s Day

on 10th SAT of JAN

Blood Donation

Support 3 times / year, since 2003

Environment Social Contribution Activities 2014

Set collected box for bottle of drinking water (PET) and donate for social contribution activities.

Donated to Wat pathumwanaram temple on Mar. 20 ,2015

Big cleaning day activity (30-31 March 2015)

Big cleaning day activity (30-31 March 2015)

Environment Social Contribution Activities 2014

Education tour in Occupational health & safety knowledge for student from Faculty of Occupational health & safety from Burapha University on Feb 11,2015

For communicate environmental information with local society ; SATL has update board at entrance of factory , Bangsamak administration office for disclose environmental Information, pollution control management system and contact person to be another window for any claims on environment from public.

Environment Social Contribution Activities 2014

• Environmental education support to children at Wat Song Klong school • Donate the refrigerator and sprinkler system for trees at Wat Song Klong school • Education trip at Conservation mangrove forest center

Environment Social Contribution Activities 2015

THANK YOU.

ENVIRONMENTAL REPORT 2015.