1. EPA Environmental Summit Atlanta, GA May 11 th, 2006 Eco-Vision & Environmental Partnerships Jim Laney Manager Environment, Safety & Health DENSO International America, Inc. Southfield, MI DENSO Mike Myzska Environmental Section Leader Denso Mfg Michigan Battle Creek, Michigan

2. Supplier Distribution: -Smartway Manufacturing Supplier: -Design for the Environment -Green Suppliers Network -Suppliers’ Partnership for the Environment -Performance Track Original Equipment Manufacturer (OEM): -Design for the Environment -Environmentally Preferable Purchasing -Performance Track -Energy Star -Green Suppliers Network -Suppliers’ Partnership for the Environment OEM Distribution: -Smartway Retailer: -OSW Product Stewardship Recycle: -OSW Product Stewardship EPA Programs and the Product Lifecycle Institutional Purchaser: Environmentally Preferable Purchasing

3. Agenda DDENSO NA Company Profile Products Facilities Sales ESH Organization Denso Battle Creek, MI (DMMI) Site Profile Background SmartWay & National Performance Track

5. DENSO North America Facilities DMAR

6. North American Sales 1986 to 2004 Dollars ($M )

7. Established: December 16th 1949 Net Sales: $24.2 billion FY04 Net Income: $1.04 billion FY04 Employees: 104,183 in 31 countries & regions 3/05 Global DENSO (FY end 3/31/04)

8. Global Net Sales Breakdown Powertrain Control Systems (22.7%) Electronic Systems(14.8%) Electric Systems (11.4%) Small Motors (7.1%) ITS (3.6%) Other Automotive (1.4%) Thermal Systems (34.9%) Others (2.0%) Industrial Systems & Consumer Products (2.1%) FY End March 31, 2004

9. DIAM Executive Vice President (C/S) DIAM Senior Vice President (C/S) Green Procurement EMS 5S CommitteeEnv. CPT Committee DIAM ESH Organization DIAM Chairman & CEO DIAM ESHD Environmental, Safety & Health Department Coordinator - ESH Staff Facilities Representative Housekeeping Representative Purchasing Representative TTS Representative S/R Representative ESH Representative 2 Eng Representative CS Representative Coordinator – TTS Staff Manage DIAM Eco-Vision Activities Manage DIAM Safety Activities Waste Reduction Energy Reduction Policy Making Incident Investigation Contingency Planning DENSO ENVIRONMENTAL ORGANIZATION DIAM SoC SECRETARIAT DIAM SoC GROUP LEADERS DIAM SoC Work Group DIAM SoC Organization DIAM ESHD DIAM EAD Members From: DIAM MED DIAM BPD Coordinator: R. Townsend, DIAM ESHD SoC Executive: M. Matsushita, DIAM President & COO Members From: DIAM Engineering DIAM Marketing DENSO NA Environment & Safety Organization DNJP Environment Committee Chairman: DNJP President Product Environment Subcommittee Production Environment Subcommittee Environmental Communication Subcommittee North America Regional Environment Committee DIAM Chairman & CEO Matt Matsushita DENSO Group Environmental Management Committee Chairman: J. Laney Eng Representative NASCOM - North American Safety Committee Chairman: J. Laney Southfield Campus HQ & R&D

10. DENSO Group Environmental Management Committee DGEMC DENSO Group Environmental Management Committee DIAM AMI AFCO MACI TBDN DMAT DNMX DSCA ANC DMMI AIMS GNC 12 original participants Now 17 sites DMAR DMTN DWAM KDMK DMCN

11. Vision Strategy The corporate global environmental plan EV 2015 has 28 specific Global targets Incorporation Each “Region” to develop local targets (i.e. NA, EU, Asia..) Implementation Regional targets to be implemented at each plant Basic Framework Eco-Vision ECO-Vision 2005 DENSO Corporate Environmental direction since 2000

12. DENSO Global ECO-Vision Eco-Vision 2005, followed by Eco-Vision 2015 The key “pillars” to the program (2015) … Eco – Management (inside of our walls) Eco – Products (Product & process design) Eco – Factory (Efficient operations) Eco – Friendly (Community involvement) The Eco-Vision program serves as the backbone for a Green Manufacturing system at DENSO Eco-Vision Round 2 2015- What’s next? Regional Approach ECO-Product

13. DENSO ECO-Products CO2 Air Conditioning System Hybrid Version CO2 CO2 AC Components DENSO

14. DENSO ECO-Factory in NA DENSO Manufacturing Michigan Inc. DMMI Environmental Projects Waste Water / Stormwater Zero Waste PRTR Chemical Reductions Location: BattleCreek, MI Associates: 3200 Products: HVAC, Blowers, Radiators, Heaters, & AC Evaporators & Condensers

15. EV 2015 has 28 specific Global targets For Logistics …  Improve transportation and eco drive to reduce global CO2 emissions  Expand understanding of the CO2 inventory, to include transportation issues, including company vehicles, business trips, and others. Global and local requirements to reduce emissions Is SmartWay a tool to help DENSO implement some of her Global Goals? Eco-Vision and Smartway ?

16. Goal: Improved environmental performance in freight delivery services EPA goals - Reduced CO2 emissions - Improve energy security - Better relationship with the trucking industry 308 + SmartWay Partners (Jan. 2006) DMMI invited because of involvement EPA Performance Track (Stewardship) Program EPA SmartWay Helps w/ Integration

17. As a Shipper - Program Benefits: * Reduced Environmental Transportation Footprint * Potentially lower costs for delivery services with improved logistics * Demonstrate corporate citizenship by hiring cleaner carriers * Enhanced public relations value for Partners * Qualify to use the SmartWay Transport Partner logo * Improved metrics to monitor shipping costs The Program is consistent with DENSO’s corporate expectations in Eco Vision 2005 and 2015. EPA & State partnerships assist Denso in attaining ECO-Vision Goals! Bottom Line

18. DENSO – Getting Started Time FrameProgram Emphasis0.5 FLEET Score Attainment Year 1.Awareness & Investigation+ 10 % Year 2. Implementation + 30 % Year 3. Improvement +60% The Concept is … 1. Emphasis on carrier involvement 2. Gradual improvements

19. Proposed 2006 G&O’s Action Items Company & Corporate Awareness Improve awareness of EPA carrier system Corporate Environmental Presentation Corporate Logistics Presentation Carrier Notification Carrier Presentation / Luncheon? Tier II Supplier Presentation Site Impact Reduction Improve carrier mileage tracking systems Implement site footprint committee Footprint evaluation & benchmarking Site idling reduction program Key members in the decision making process PurchasingProduction Control

20. Summary DENSO Michigan joined SmartWay – Because … * Consistent with our Corporate Environmental Directives * We can reduce our Environmental Transportation Footprint * Smartway carriers likely to become more competitive DENSO Michigan joined SmartWay – Because … * Consistent with our Corporate Environmental Directives * We can reduce our Environmental Transportation Footprint * Smartway carriers likely to become more competitive

21. Any Questions? Help Desk