1 September 23, 2009 Japan Electronics & Information Technology Industries Association (JEITA) Japan Electrical Manufacturers Association (JEMA) Energy Efficient Products: Technology and Supply Chains

2 Encouraging the use of energy efficient products is important as a means to address climate change. Replacing old products that consume more electricity with energy efficient products, and theirs expanded use, will contribute to reducing Co2 emissions. Thus we, the electrical and electronics industry, consider that the use of energy efficient products worldwide will also help address global warming.

3 Global Environmental Issues to be resolved by 2050 Source: OECD/IEA: World Energy Outlook 2008 Energy Technology Perspective The value of each item is indexed against its value in 2005 (value in 2005 is 1) Global economic development Reducing the increased environmental impacts generated by increased population Increased significance of global environmental issues X 1.4 X 4.3 Per capita: x 3.1 GDP Population CO 2 emissions × 0.5 Oil Crisis Industrial Revolution Accelerated world population increase 1800

4 Power Consumption of Home Appliances Source: Agency for Natural Resources and Energy, Government of Japan

5 Penetration Rates of Consumer Durables in Japan Unit: % Source: Cabinet Office, Government of Japan

6 Reduction of Power Consumption Source: JEITA JEMA Power consumption (per year) 2,184kWh/Y 1,411kWh/Y -40% -54% -44% 124kWh/Y 70kWh/Y kWh/Y kWh/Y TVs: Color CRT 21 inch (1995) 26V Flat Panel TV (2009) Air-conditioners: Capacity 2.8kW (1995) (2008) (1998) (2008) Refrigerators: Liters L

7 Smart efficient fan Smart heat exchanger Smart compressor with inverter Compared to air conditioners of 10 years ago. Source: JRAIA Annual Power Consumption -40% Smart Air Conditioner Technology innovation in the energy efficiency of air conditioners

8 Technology innovation in the energy efficiency of refrigerators Intelligent compressor operation High performance vacuum insulation With Insulation Without Insulation ice Heat insulation The inverter compressor unit provide finely tuned operation with far lower temperature variations, so the power consumption of a refrigerator with inverter compressor is lower than that of a refrigerator with standard compressor. Inverter compressor Reduced annual power consumption ( L) Source: JEMA This is not data for a specific refrigerator but approximate data Derived from several refrigerators ( L) in every each fiscal year. Environmentally Friendly Refrigerator

9 Reduced Power Consumption by Flat Panel TV 21 inch CRT TV (1995) 52×48×48 : 23.4Kg 26V Flat Panel TV ( ×44×9 : 9.6Kg (including TV stand) 70kWh/Y 124kWh/Y Chemical Substances & Recycling # Non-use of specific chemical substances # Non-use of lead-solder circuit boards Reduced annual power consumption Resource Conservation # Greater functionality together with enhanced resource conservation # Slim, lower weight design # Use of recycled plastics (Resource Conservation) energy efficiency - 44%

10 Mobile Phone Energy Efficiency X 42 X 110 mm (900g) X 50 X 15 mm (125g) X 55 X 220 mm (3kg) *Standby time: 6 hours in hours in 2009 (100 times) *Output power: 5 watts in watts in 2009 (1/25) (Resource Conservation)

11 Japan (6%) Central and South America, Mexico (3%) U.S. (2%) Europe, etc (1%) Production of Air Conditioner 84M units Global Production of Room Air Conditioners (2008) Source: Fuji Chimera Research Institute Asia (88%) (excl. Japan) China Korea India Singapore Thailand Malaysia, etc.

12 Global Production of Refrigerators (2008) Japan (3%) Asia (65%) (excl. Japan) China Korea India Singapore Thailand Indonesia Vietnam, etc. Central and South America Mexico etc (10%) U.S. (7%) Europe etc (16%) Production of Refrigerator 78mil units Source: Fuji Chimera Research Institute

13 Global Production of Flat Panel TVs (2008) Japan(9%) Asia (48%) (excl. Japan) China Korea Taiwan India Thailand Malaysia Indonesia Vietnam, etc. Central and South America, Mexico etc (20%) Europe etc (23%) Production of Flat Panel TVs 120M units Source: Fuji Chimera Research Institute

14 Global Production of Mobile Phones (2008) Japan(3%) Asia (93%) (excl. Japan) China Korea Taiwan India Malaysia, etc. Central and South America, Mexico etc (1%) Europe etc(2%) Production of Mobile Phones 1240M units Source: Fuji Chimera Research Institute U.S. (1%)

15 JEITA-JSIA Green Product Green Fabs Green Fabs Manufacture Semiconductors are the Key to Saving Energy Green Society Energy-Saving Energy-Saving Social System Social System Green Green End-Products Energy-Efficient IT Products and Home Appliances

16 Air-Conditioner Assembled in China, Taiwan, Thailand, Malaysia, Indonesia, Singapore, Australia, UAE, Italy, UK, Spain, Russia, France, Sweden, Germany,Italy, India, USA Source : Parts Global Supply Chain for Air- Conditioners Intermediate commodities Compressors Heat Exchangers etc. France, Spain, Belgium, Italy, Poland, Sweden, Austria,Germany, Greece, Turkey, Australia, New Zealand, UAE, Iran, Saudi Arabia, Kuwait, Argentina, Taiwan, Hong Kong, China, Japan, USA Countries importing from ASEAN (example)

17 Refrigerator Assembled in China, Thailand, Vietnam Singapore, Malaysia, Russia, Indonesia, Brazil Australia. Egypt, USA, UAE, Sweden, Germany, Spain, Hungary, Poland, Turkey Source : Global Supply Chain for Refrigerators Intermediate commodities Parts Compressors Evaporators etc Russia, Taiwan, Saudi Arabia, Oman, Iran, India, Kuwait, Lebanon, Jordan, Bahrain, Qatar, Pakistan, Yemen, Turkey, Australia, Japan, Vietnam, Malaysia Countries importing from Thailand (example)

18 Global Supply Chain for Flat Panel TVs Image processing units Tuner units I/O terminal units Inverter units Covers Stands Housing Liquid crystal modules Assembled in China, Taiwan, India, Indonesia, Japan, Korea, Malaysia, Thailand, Mexico, Brazil, Vietnam Remote controls Intermediate commodities Parts Main production country Liquid crystal panels Japan, Korea, Taiwan, China Power supplies China, Taiwan, India, Indonesia, Japan, Korea, Malaysia, Singapore, Thailand, Vietnam IC chips Thailand, Malaysia, Philippines, Indonesia, Singapore, Vietnam, Taiwan, China, Korea, USA, Japan, EU Capacitors Thailand, Malaysia, Philippines, Indonesia, Singapore Resistors Thailand, Malaysia, Philippines, Indonesia, Singapore Connectors Thailand, Malaysia, Philippines, Vietnam Inductors Malaysia, Philippines, Vietnam Relays Philippines China, Taiwan, India, Indonesia, Japan, Korea, Malaysia, Thailand, Mexico, Brazil China, Taiwan, India, Indonesia, Japan, Korea, Malaysia, Singapore, Thailand Speakers Flat Panel TV

19 Mobile phones Signal processing boards Antennas Speakers Keyboard switches Microphones Liquid crystal modules Assembled in Brazil, China, Chinese Taipei, India, Korea, Japan, Malaysia PartsMain production country Liquid crystal panels Japan, Korea, Chinese Taipei, China, Singapore Printed circuit boards Japan, USA, China, Chinese Taipei, Korea, Thailand, Singapore, Malaysia, Vietnam, India, Mexico, EU IC chips Thailand, Malaysia, Philippines, Indonesia, Singapore, Vietnam, Chinese Taipei, China, Korea, USA, Japan, EU Capacitors China, Chinese Taipei, Korea, Japan, Thailand, Malaysia, Philippines, Indonesia, Singapore Resistors China, Chinese Taipei, Korea, Japan, Thailand, Malaysia, Philippines, Indonesia, Singapore Connectors Japan, Thailand, Malaysia, Philippines, Vietnam Inductors China, Chinese Taipei, Korea, Japan, Thailand, Malaysia, Philippines, Vietnam Covers Parts Camera modules Batteries Brazil, China, Chinese Taipei, India, Korea, Japan, Malaysia Intermediate commodities Global Supply Chain for Mobile Phone

20 Industry-wide Message to WTO 1. We consider energy and resource conservation to be an important issue in terms of the environment. We in the electrical and electronics industry always have the importance of energy and resource conservation at the forefront of our minds from when we start designing/manufacturing our products. 2. The developing countries play a significant role in the supply chain for the manufacture of products that contribute greatly to energy and resource conservation. 3. We wish to contribute to environmental preservation by sharing the benefits that can be reaped from the effects of energy and resource conservation.