Social Responsibility Policy PERFORMANCE DURABILITY CUSTOMER SERVICE INTRODUCTION This document outlines our company-wide approach to making both our products and our activities more environmentally friendly, as well as the efforts we have made (and continue to make) to give our customers an unrivalled level of quality and service, to ensure a better working environment for our employees and to support our local community wherever we can. Part one of this document looks at all the organizational measures we have carried out to achieve these goals, with particular emphasis on the work we have done to refine our production process. Part two, meanwhile, highlights the steps we have taken to ensure that our world-beating range of materials handling equipment consists of some of the cleanest and 'greenest' lift trucks anywhere. CONTENT OUR ORGANIZATION OUR PRODUCT RANGE - Customer satisfaction - Emissions levels - Total quality orientation - Noise and vibration levels - Working towards tomorrow - Hydraulic oil - Environment - Eco-settings on diesel trucks - Developing our staff - Truck recycling - Health and safety - Into the future - Award winning employer - Sponsoring the local community - Emissions reduction CONCLUSION - Cutting down on waste - Streamlining transport - Into the future 2 PART I OUR ORGANIZATION In general terms, we follow the corporate social responsibility policies and values set out by our parent company, the MHI group, which have been translated into the following core values for all of the production activities at its counterbalanced lift truck plant in Almere, The Netherlands. CUSTOMER SATISFACTION TOTAL QUALITY ORIENTATION For us, the customer always comes first and their complete satisfaction is our top priority. We maintain high safety and environmental standards in our production process, delivering best-inclass quality with reliable and flexible lead times. TOGETHER WE CREATE TOMORROW To make sure these values are adhered to, we have implemented an integrated management system which meets or exceeds all the requirements and principles of: Agreed annual departmental and individual targets, with particular emphasis on quality, safety & environmental improvements and the prevention of pollution Quality standards such as ISO 9001 The environmental management standard set out in ISO 14001 Our managers lead by example, inspiring our workforce to ever higher standards of quality and teamwork and ensuring we always act with complete integrity with both our business partners and our customers. Local legislation. MHI's corporate social responsibility guidelines. The J-SOX financial reporting standard. 3 ENVIRONMENT DEVELOPING OUR STAFF As part of our ISO 14001 certification (achieved in July 2002), we committed ourselves to setting targets and implementing measures to reduce our impact on the environment and to monitoring and measuring our progress in this respect on an ongoing basis. Our staff is important to us and, as part of each employee's annual appraisal process, every individual's strengths and skills are continuously reviewed in a Personal Development Plan. Generic and specific training is subsequently applied to enhance each employee's skills, competence and job satisfaction. These targets are incorporated into business plans for our various departments, along with key performance indicators that let us measure and monitor our progress along the way. One good example is the significant reduction in waste and hydrocarbons we have achieved in the production of lift trucks in recent years, as illustrated in the following table: Year Overall waste (kg/truck) 2004 2005 2006 2007 2008 2009 2010 258 225 221 208 209 249 301 Non-recyclable waste (kg/truck) 16,2 15,4 10,8 9,2 9,0 9,0 3,8 Since it is often difficult to find the right qualifications in the open job market, we have also set up our own in-company training facility. Different training programs are offered there, some catering for new apprentices coming directly from school; others tailored to existing staff. Apprentices will be given basic training in welding, painting or assembly. All kinds of training in several modules is given within the company training centre for all employees to secure the basic knowledge and skill level. After a period of on-the-job training, each employee can pick an area of specialization and will then be entered into a modular training program designed to refine their skills in their chosen area. There are, however, many other ways apart from this in which we have improved our factory's sustainability and reduced our environmental impact, both in terms of process and human resources. We believe in stimulating and creating awareness . This will lead to responsibility and prevention. 4 HEALTH AND SAFETY AWARD WINNING EMPLOYER We have an excellent site safety record at Almere and actively stimulate safety awareness among both shop-floor workers and management on a continuous basis to help ensure the safety of all our staff and visitors. Daily safety reviews are held at each of the production line workstations, where supervisors present and discuss all the key issues on a regular basis. We're also very keen to protect the health of our staff, so we have invested in streamlining our assembly line to make it thoroughly ergonomic from reducing the distances staff need to walk to collect vital components to installing a state-of-theart overhead conveyor for our chassis line that rotates the chassis as required to avoid staff having to work at awkward angles. Vitality and prevention are important ingredients that have led to a lower illness ratio. Our company was named 'Enterprise of the Year 2008' by the City of Almere in recognition of our role as one of the region's biggest employers, with over 650 staff on the payroll. Among the reasons given by the judges in selecting us for this prestigious award was the fact that we have expanded production capacity in Almere with a new production line, preferring to invest in The Netherlands rather than following the 'herd' in relocating to lower-cost production facilities on the other side of the world. We took this decision in order to retain maximum possible control of quality and also to reduce the transport emissions associated with the manufacture and delivery of its products. The judges were also impressed by the level of investment we had made in staff training and development, both within the in-house training facility and via other local training organizations. In 2010 our company was nominated in the Province of Flevoland for the best “Training/Learning Company”. SPONSORING THE LOCAL COMMUNITY For many years, we have sponsored activities in the community, including the local football team and local theatre. We're proud of being one of the biggest employers in Almere and proud of the region we're based in, so it makes perfect sense for us to support our local community in this way. We have a very good cooperation with the local school (ROC) to develop their technical subjects/ topics. 5 EMISSIONS REDUCTION We have dramatically reduced emissions of hydrocarbons and other hazardous materials in the production of its lift trucks. For the protection of our masts, we use a dry, powder coating process free of hydrocarbons used in paints. For the protection of our chassis, we use 'high solidity' paint which means we use 30% less paint overall and have also cut down on the use of solvents. For cleaning equipment used in the painting process, we regenerate 90% of the Thinners used to reduce chemical waste. Where Chrome is used (anti corrosion), we have switched from Chromium VI materials to alternatives wherever possible. CUTTING DOWN ON WASTE STREAMLINING TRANSPORT Several years ago, we introduced a waste management initiative to cut down on the amount of waste we produce and increase the quantity of materials we recycle. Our company has also made great efforts to reduce the number of heavy goods vehicles employed for lift truck deliveries to dealers and customers and to reduce the total distance travelled by inbound raw materials and components. Among the measures we have taken to achieve this goal was a switch from using disposable, one-trip pallets to high quality wooden pallets from a pallet pool. This reduces the quantity of wood needed to get the parts to the factory, as pallets are always reused. We have also invested in the use of returnable plastic pallets in other parts of the operation which last much longer than wooden equivalents, to further reduce our impact on natural resources. On top of this, we have worked hard with our suppliers to cut down on the amount of individual component packaging they use when sending us the parts and materials we need. Fasteners, for instance, are no longer packaged at all but supplied to us in reusable plastic bins; and we now get our suppliers to group kits of mixed parts together in just the right quantities for particular production operations, rather than supplying them all in individual packages and in greater quantities than are needed. Wherever possible, we will consolidate outbound loads to ensure goods vehicles are only dispatched when full, reducing the so-called 'empty running' that wastes lorry capacity and increases emissions per tone carried. For inbound deliveries, meanwhile, we have established a 'milk run' in which our goods vehicles visit several suppliers in turn around Europe before returning to deliver them into our plant at Almere - dramatically reducing the total distances travelled. We have also sought to source materials and components as locally as possible, cutting down on the sourcing of parts from the Far East in favour of local European suppliers and even investing in equipment like laser, plasma and flame cutting machines so that we can manufacture as many parts as possible within the Almere factory itself, rather than relying on outside sources. Rear axle and engine assembly, for example, are now both carried out fully on site. 6 INTO THE FUTURE We are in full compliance with the requirements of regulation 1907/2006/EG for the Registration, Evaluation and Authorization of Chemicals (REACH). This calls for us to limit the quantity of hazardous materials used in our lift trucks and ensure that such materials cannot escape out into the environment during a truck's normal working life. We are committed to meeting and exceeding regulatory standards in the future, taking whatever actions we can to ensure our operations continue to demonstrate high standards of environmental responsibility. 7 PART II OUR PRODUCTS Continuous innovation and the introduction of new technologies have helped make our lift trucks among the cleanest and greenest in the world. EMISSIONS LEVELS NOISE AND VIBRATION LEVELS All our trucks comply with European Union Directive 2000/14/EC on noise levels and we always endeavor to achieve the lowest possible noise and vibration levels in its products beyond such standards, both to make drivers more comfortable and to keep general site noise to a minimum for our customers. HYDRAULIC OIL All our lift trucks are manufactured in compliance with the applicable European Union regulations on emissions. Diesel powered trucks, for instance, are produced in compliance with Stage IIIA of the EC exhaust emissions Directive 97/68/EC (as amended). Continuous development is ongoing in cooperation with our parent MHI to ensure we continue to comply with all future European emissions legislation and, in particular, that we are ready for the forthcoming regulations on emissions due in 2012. All our trucks also comply with the requirements of the European Union Machinery Directive 2006/42/EC, ensuring our products can be used safely without posing any unnecessary risk, as well as the requirements of European Union Directive 2004/108/EC on electromagnetic compatibility, which means our trucks will not interfere with other equipment nearby or be affected by electromagnetic emissions from such machinery. The optional available biodegradable hydraulic oil provides class-leading performance for our customers while helping them to meet their environmental targets. The oil can be used in environmentally sensitive areas such as waterways and harbors as it is rapidly broken down by micro-organisms, helping to minimize any impact on the environment. ECO-SETTINGS ON DIESEL TRUCKS Our diesel trucks now feature a switch that can be used to reduce the overall power used. Operating with these 'eco-settings' can reduce fuel consumption by 12% and noise levels by 3dB(A), cutting the truck's carbon dioxide emissions drastically and making the working environment more peaceful. 8 TRUCK RECYCLING CONCLUSION Since the majority of material used in a modern lift truck is steel, a high level of recycling is possible at the end of a truck's life and we are fully committed to maximizing the amount of recycling that actually takes place. Our company takes the environment very seriously and we look forward to carrying on with the process of continuous refinement, both on the production line and in our products, to ensure that we remain one of the leading provider of the cleanest, greenest, best quality trucks anywhere on the market - and at the forefront of best practice in protecting our environment. INTO THE FUTURE We are constantly improving and innovating in our product range, investing large sums into research and development to ensure our lift trucks continue to lead the field, both in terms of performance and environmental impact. Key aspects such as reducing fuel usage, using alternative energy sources and recyclability are all kept under constant review. With minor modifications, our diesel trucks can already be run on a biofuel mix and we are also actively considering the use of hybrid diesel-electric technology and alternative fuels in the future. 9 YOUR PARTNER IN MATERIALS HANDLING OEFC1187 (March / 11) © 2009 MCFE B.V. All rights reserved. Hefbrugweg 77. 1332AM . Almere . The Netherlands. CAT,, CATERPILLAR their respective logos, ‘Caterpillar yellow’ and the ‘Power Edge’ trade dress, as well as corporate and product identity used herein, are trademarks of Caterpillar and may not be used without permission.