Club Car – Sustainability

May 20, 2014

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Agenda• Overview

• LCA & Operational Sustainability

• Take Back Program

• Reman Process

• Recycling/Reuse

• Opportunities

• Q & A

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A Diverse Product PortfolioWorld’s largest product portfolio of any small wheel vehicle manufacturer supporting three categories.

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Club Car platform variety drives opportunities in major market segments.

CommercialUtility, Cargo & Personnel Vehicles

GolfGolf, Utility & Hospitality Vehicles

ConsumerHome Use & Rough Terrain Vehicles

4x4

800

Vehicle Markets

Café Express SE

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Low-Speed Vehicles engineered to travel on roads with speed limits of 35 mph or less.

When compared to traditional transportation,LSVs provide distinct advantages:

Zero EmissionsReduce environmental impact.

Zero FuelSignificantly reduce fuel consumption.

Lower Operating ExpensesLess expensive to purchase and operate. No fuel and reduced maintenance costs translate into significant savings.

Improved productivity• Quicker vehicle entry and egress.

• Tighter turning radius and narrow vehicle width enables LSV vehicle to enter tight areas and get close to work zones.

• Lighter footprint is better for driving on grass.

• Payloads up to 1/2 ton.

Villager 2+2 Passenger LSV

Carryall 6 Cargo LSV

Street-legal LSV Solutions

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Subaru EX40 EFI Gas Powertrain

OHC vs OHV

EFI

More Power • 30% more HP• 400cc displacement• 20 ft-lbs output torque• Limited Slip Option

• No choke• Up to 50% more fuel efficient• Quick cold starting• Automotive design

• Fewer parts• More robust design• Longer life• Quieter valve train

• No oil filter to change• Less cost• Better for the

environment• Cooler oil temps

Splash/Chain Lubrication

Most modern small engine design and mfg. process in the world

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Our global footprint helps make Club Car No. 1 in world-wide market share.

Channel Presence

• 500+ distributor locations worldwide

• Expanding consumer retail outlets & low-speed vehicle (LSV) dealers

• Distribution is located in 80+ countries

• Distribution has sold 2,000,000+ vehicles worldwide

• No. 1 worldwide market share for electric plug-in vehicles (EPVs)

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Life Cycle Assessment & Operational Sustainability • EHS included in NPD & MOC Process

– Evaluate utilities requirements, potential wastewater discharge, air emissions, hazardous material usage, wastes and recyclables, etc.

• Project to eliminate industrial wastewater permit on-going • General Industrial Stormwater Permit Only • No permitted air emission sources• Minimal (deminimus) Hazardous Waste Generation• New Material Request process for hazardous materials • Periodic review of inventory to identify less/non-hazardous

substitutions • Limited noise exposure to employees and surrounding area

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Environmental Impact – 2012 to YTD

• Nearly 1 Million Pounds Diverted from Landfills in 2013

• 569,000 Pounds Diverted 2014 YTD• $38,000 saved in disposal costs in

2013

• 1.1 million less gallons used in 2013 • 269,000 million less gallons 2014 YTD

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Environmental Impact – 2012 to YTD (cont)

• 13% reduction in electricity in 2013 • 6% reduction in electricity 2014 YTD• $124,000 saved in 2013

• 39% reduction in BTU in 2013 • 67% reduction in BTU 2014 YTD

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Energy Conservation

• Energy efficient lighting and sensors - Main Office and Service Parts

• New energy efficient air compressor and dryer• Rapid-roll doors in Main Plant• Programmable and locked thermostats• Energy efficient furnaces in ATUs; removal of

inefficient NG heaters• Installation of energy efficient HVAC and removal of

300 ½ HP fans• Dock and overhead door seals

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Recycling & Club Car• Sorting Areas Developed by Green Team Members and Employees

• Garbage and Dumpster Dives by Employees

• Non-Recyclables– Food waste (anything with food in it or on it)– Chewing gum– Dirty air filters– Floor sweepings– Canteen food packaging (candy wrappers, chip bags)– Used gloves (latex or other)– Oily wipes– Tobacco products– Foam packing material

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Environmental Stewardship

• Installation of low-flow commodes and sensored faucets in remodeled restrooms at Main Plant and Service Parts

• Elimination of acid wash for used car frames• Installation of energy efficient hand dryers in

remodeled restrooms• Electric fleet of plant use cars• Phased substitution of “green” products• Energy efficient vending machines• Food trucks to reduce commuting off 750+

employees

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Recycling & Remanufacturing• Trash dives and sorting at point of generation

• Battery Recycling - 99% of battery recycled and revenue to business

• Approximately 5% of the used car sales are Remanufactured for Aftermarket sale. 

• Used Parts sold to Channel Partners.

• Recycling Streams: – Lead-Acid Batteries – Aluminum, Steel & Scrap Metal– Cardboard/OCC & Mixed Paper – Computer Parts/Electronics – LDPE Film Clear & Mixed Color – Mixed Strapping & PET Green Strapping– Mixed Rigid Parts– Styrofoam – Tires – Seats – Scrap Wood/Pallets

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Battery Recycling - Environmental Benefits • 99% of Battery Recycled

• The disposal and recycling of lead acid batteries is strictly regulated by government agencies.

• According to the Battery Council International, the lead-acid battery is the most-recycled consumer product in the world. At over 97 percent, the recycling rate of spent lead-acid batteries beats aluminum cans (55%), newspapers (45%) and glass bottles (26%) by a significant margin.

• Lead is also able to be recycled infinitely without degradation of quality and recycled lead is indistinguishable from primary lead.

• Lead-acid batteries received at recycling facilities are shredded or otherwise disassembled, and the lead, casing and acid fractions are separated.

• Sulfuric acid is typically converted to sodium sulfate (a marketable material); reused on a limited basis; or neutralizing and discharged as clean water.

• Shredded polypropylene casings are washed, sized, classified, melted and extruded to form polypropylene pellets used to manufacture new battery cases.

• Lead is recovered in furnaces (smelters) and is reused for the manufacture of lead-acid batteries or as a raw material in other processes.

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Batteries, Tires, Metal & Electronics

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Plastics

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Remanufacture

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Remanufacture (cont)

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• Questions??

– Christine Dron – EHS Leader 706.228.7173