HP s commitment to the circular economy

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1 Living Progress HP s commitment to the circular economy Madeleine Bergrahm HP Social and Environmental Responsibility Copyright 2014 Hewlett Packard Development Company, L.P. The information contained herein is subject to change without notice.

2 Every day HP ships 170,000 personal systems 143,000 printers 30,000 online photo orders 3,500 servers 1.IDC WW Quarterly Hardcopy Peripherals Tracker, February IDC WW Quarterly PC Tracker, January 11, ~ 4 products /second

3 Circular economy a definition The Circular Economy encompasses a system that is restorative or regenerative by intention with design that eliminates waste. As an alternative to the linear approach (design, make, use, discard), HP believes that connecting circular economy principles to resource efficiency is the route to success.

4 Parts Manufacturer Product Manufacturer Service Providers Consumer Device as a service Facility as a service modular DC MPS Managed Print Services IHPS / Indigo Ink Subscription? Modular components / upgradeability Modular components / Ink Subscription upgradeability? Ink Subscription (Supplies) PP, PET Hardware Resin? Hardware Resin? Ink Subscription (Supplies)

5 Implementing circular economy in HP Product design Business models Reverse cycles Partnerships to create transformational leadership 5 Copyright 2014 Hewlett Packard Development Company, L.P. The information contained herein is subject to change without notice.

6 Reducing materials and energy use in personal devices progress 2013 Example: EliteBook 800 series is on average 37% thinner and 23% lighter than the platform it replaces Example: Shorter power cords 1.8 m 1 m eliminated 15,600 km cord and 900 tonnes Cu + plastics / year. Also reduced GHG emissions manuft+ship by 5,700 tonnes CO 2 e (equals 1,200 cars removed from roads/year)

7 HP Managed Print Services Creates and deploys enterprise-wide print and workflow strategies Up to 80% energy savings (typical 20-40%) Save up to 30% in printing costs Reduce paper waste by millions of pages HP has ~1 million printers currently in MPS At EOL: 74% are refurbished/resold, 26% recycled Retire Acquire As low as $ 19/mo. Use & Maintain Set up DaaS for SMBs Launched in June 2014 for micro/small businesses Product simplicity: Subscription is simpler than subscribing to components separately Product affordability: Subscription is cheaper or equal than buying the PC upfront (fair market value) Up-to-date technology: Includes the latest products from HP (hardware, software and service)

8 Extend and expand reverse cycles: Hardware and supplies recycling services HP continues to be a leader in total material recycled and reused 21,400 tonnes hardware reused in 2013: Re-use rate is 95% if exclude sub-components recycled for data security Lease returns re-used at 93% 113,200 tonnes hardware and cartridges recycled in 2013 Now available in 70 countries HP refurb centre, Scotland

9 Extending and expanding reverse cycles R2P2 Supplies RCP 90% sales vol HP closed loop PP clothing hangers Wave 3b: HI rpp Wave 3a: HI rpp 45% sales vol HP closed loop PET bottles PP clothing hangers Wave 2: rpp Wave 1: rpet HP ink cartridge manufacturing plant, Dublin

10 SUMMARY HP example of business case for Circularity HP offer products and services already examples of (almost) CE: Ink subscription, Managed print services, Closed-loop recycled plastics in supplies Challenging material for IT plastics We need: consistency quantities - quality and skilled/professional recycled materials manufacturer Other challenges : - new type of business processes such as export licenses, - consumer adaption recycling and recycled content,... Looking forward to new types of partnerships!

11 Tack! Copyright 2014 Hewlett Packard Development Company, L.P. The information contained herein is subject to change without notice.