Environmental Logistics The Canon Story - Meredith Wieta Manager, Americas Planning and Environment Logistics Division Canon U.S.A., Inc.

Environmental
                        Logistics
                     The Canon Story

                        Meredith Wieta
                        Manager, Americas Planning and Environment
                        Logistics Division
                        Canon U.S.A., Inc.

Canon U.S.A., Inc.                                                   1

About Canon U.S. A.
   — Located in Melville, N.Y., which serves as the Americas
        Headquarters for U.S., Canada, Latin America and
        Mexico.

   — Leading provider of consumer, business-to-business,
        and industrial digital imaging solutions. We have an
        extensive product list at www.usa.canon.com, including
        our successful camera, printer and healthcare solutions.

Canon U.S.A., Inc.                                                 2

Corporate Philosophy

Canon U.S.A., Inc.                          3

Corporate Social Responsibility

                 "At the heart of Canon's commitment to the
                 world community is the belief that we are
                 building a better world for future
                 generations.“

                 - Joe Adachi, Chairman and CEO, Canon
                 U.S.A., Inc."

Canon U.S.A., Inc.                                            4

LEED Building Certifications
                                               Canon Americas Headquarters
                                               Melville, NY
                                               •   Certified LEED Gold
                                               •   Numerous environmentally conscious elements include:
                                                     •   Design that emphasizes the use of natural lighting
                                                     •   Incorporation of energy-efficient equipment and materials in
                                                         construction
                                                     •   Water efficient plumbing fixtures reduce water consumption by 35%

Canon USA Southeastern Regional DC
Norcross, GA
•LEED Certified v4
•1st to be honored in “LEED Building Design and Construction
Warehouses & Distribution Centers” Category
•Numerous environmentally conscious elements include:
     •   Energy-efficient lighting equipped with motion-sensors and roof-mounted
         solar array
     •   Indoor and outdoor water saving measures including the utilization of
         drought-resistant vegetation.
     •   Incorporation of environmental operating practices such as a
         comprehensive recycling program, “green cleaning” policy and
         increased use of recycled content logistics supplies.

  Canon U.S.A., Inc.                                                                                                     5

Environmental Charter

Canon U.S.A., Inc.                           6

Product Life Cycle

Canon U.S.A., Inc.                        7

Dedication to Emissions Reduction
— Began internal reporting and evaluation of CO2 emissions in 2003

— Charter Partner with SmartWay since 2004

— "As a sales organization, we realize that shipment transportation is one of
     the largest areas of opportunity where we can make a positive impact on
     carbon emissions reduction. As a SmartWay Charter Partner, we have
     seen our internal CO2 reduction goals being further supported by our
     transportation partners seeking similar improvements. We are proud of
     our longstanding involvement in this partnership.“

                     Atsuo Sudo, Vice President, Logistics, Canon U.S.A.

Canon U.S.A., Inc.                                                         8

Canon U.S.A., Inc.   9

Green Cycles Distribution
—   Mode Shifting: Find new opportunities to shift inbound and outbound delivery of
     products to modes that have less impact on the environment

—   Load Efficiency: Reduce the number of shipped containers by consolidating
     operations and maximizing the space utilization per container to reduce the total
     number of miles travelled by our products, which reduces the impact on the
     environment.

—   Packaging Improvements: Introduce smaller, lighter and recycled logistics
     packaging that maintains in-transit safety of our products while minimizing our
     impact on the environment.

—   Encourage SmartWay Program Participation: Communicate a preference in working
     with SmartWay Partner carriers and evaluate carrier performance using the
     SmartWay tool.

                  For more information on Canon’s Focus on Green Cycles :
                    http://www.canon.com/v-square/movie.html?id=e015

 Canon U.S.A., Inc.                                                                      10

Comparing within a Mode
•    Previously we were not able to accurately compare carrier environmental performance

•    The SmartWay Shipper Tool provides carrier specific values based on actual data:

                                                                Carriers who have not
      Carrier Name                 Fuel Efficiency (MPG)        joined SmartWay are
                                                               assigned a relatively low
     Non-SmartWay Truck                                                  MPG
     Carrier                               4.17
     SmartWay Carrier A                    5.80                  Carrier performance
                                                              directly influences shipper
     SmartWay Carrier B                    6.25
                                                                         scores!
     SmartWay Carrier C                    6.25
                                                              Encourage carriers to join
     SmartWay Carrier D                    8.46
                                                                    SmartWay!
     SmartWay Carrier E                    9.67

                  Ultimately, 3 of our carriers joined SmartWay at our urging!

    Canon U.S.A., Inc.                                                                  11

Carrier Commitment
          100%

           80%

           60%
                                                               SmartWay
           40%                                                 Non-SmartWay

           20%

            0%
                     2007   2008   2009   2010   2011   2012

— Noticeable improvement in SmartWay Carrier use

— Largely due to the success of the SmartWay Partnership

— More recently due to our encouragement
     — Inclusion of SmartWay language in our RFPs
     — Formal letter of request to join SmartWay Transport Partnership
     — Request for environmental improvement updates during review
         meetings

Canon U.S.A., Inc.                                                            12

SmartWay Partnership Participation
   • The use of carriers who are SmartWay partners will
        more than likely improve your emissions data

   • SmartWay data allows a shipper to compare
        carriers in terms of Environmental Performance

   • Opportunity to network with other like-minded
        shippers, Carriers and Affiliates

   • Your participation in the program entitles you to
        use the SmartWay logo which can be used in:
             • Company brochures
             • Sustainability Reports
             • Bid requests
Canon U.S.A., Inc.                                        13

Thank you!

                     Questions?

Canon U.S.A., Inc.                14