1. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 1 Content: - The WEEE (Waste Electrical and Electronic Equipment) directive - Producers’ and importers’ responsibilities (WEEE) - The RoHS (Restriction of Hazardous Substances) directive - Producers’ and importers’ responsibilities (RoHS) - Product classification for both directives (1-10) - Danfoss products subject to the directives - The countries in which the directives are applicable - Deadlines and who does what? - Further information Danfoss and the EU directives WEEE and RoHS This presentation is a brief explanation of the two directives and the activities they give rise to at Danfoss.

2. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 2 The WEEE (Waste Electrical and Electronic Equipment) directive EU Environmental Policy forms the basis of the directive, focusing on minimising the use of natural resources, recycling to the greatest possible extent and preventing pollution. Producers’ and importers’ responsibilities (WEEE)  They should register with the authorities in all of the EU countries in which they sell equipment with electrical components.  They should state which products with electrical components they would like to sell in the EU countries before the products are marketed. The products should be labelled with a pictogram.  They should make agreements with approved collection schemes and waste handlers in all EU countries in which they sell equipment with electrical components.  They should report the volumes of equipment with electrical components sold to each EU country, so that producers’ duties for the EU countries can be calculated.  They should make environmental data and dismantling guidance available to waste handlers in all EU countries.  They should develop products that can be reused to the greatest possible extent.

3. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 3 The RoHS (Restriction of Hazardous Substances) directive EU Environmental Policy forms the basis of the directive, focusing on the restriction of certain hazardous substances in electrical and electronic equipment. Producers’ and importers’ responsibilities (RoHS)  Our products which include electrical components are not allowed to contain lead, cadmium, hexavalent chromium, mercury or specific flame retardants (typically used in plastics and print materials)  Our mechanical components must not contain the above-mentioned materials, if our customers merge the components with electronic controls for equipment covered by the RoHS directive.  The directive is often linked to the concept of lead-free soldering, but the requirements are not limited to this.

4. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 4 The ten product classifications applying to WEEE and RoHS 1. Large household appliances 2. Small household appliances 3. IT and telecommunication equipment 4. Consumer equipment 5. Lighting equipment 6. Electrical and electronic tools 7. Toys, leisure and sports equipment 8. Medical equipment 9. Monitoring and adjusting devices 10. Vending machines Pictogram requirements of the WEEE Directive Pictogram proposals of the Danfoss Group - a voluntary arrangement

5. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 5 Countries in which the directives are applicable EU countries: BelgiumMalta CyprusPoland DenmarkPortugal EstoniaSlovakia FinlandSlovenia FranceSpain GreeceGreat Britain HollandSweden IrelandThe Czech Republic ItalyGermany LatviaHungary LithuaniaAustria Luxemburg EEA countries: IcelandLichtenstein Norway EFTA countries: Switzerland

6. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 6 Deadlines RoHS: July 2006 (not applicable to product categories 8 and 9) WEEE: differs between countries, but typically … - Pictogram/labelling, middle - end of 2005 - Registration in the countries, end of 2005 – beginning of 2006 - Reporting and producers’ duties, beginning of 2006 Who does what? RoHS implementation: It is often the development, production and quality departments of the business areas that take the action necessary for timely compliance. WEEE implementation: The implementation, registration and contractual issues in member countries are coordinated by a WEEE project team at the Danfoss Group, in cooperation with the local Danfoss companies.

7. 2005 RoHS & WEEE implementation Two EU directives set requirements for producers and importers of electrical equipment 7 Further information is available from The person responsible for quality and environment at your local Danfoss company. Sales and marketing functions at the Danfoss Business Units People responsible for WEEE and RoHS at the Danfoss Business Units WEEE and RoHS directive consultant at Danfoss Industrial Services WEEE Project Manager for the Danfoss Group Danfoss Intranet site (currently being established)