Prepared and delivered presentation to the Tennessee Recycling Coalition which overviewed initiatives undertaken under my leadership.

1. La-Z-Boy
Waste Reduction, Reuse and Recycling Metrics
Key Sustainability Material Management Components in
a Lean Manufacturing Environment

2. Overview
 La-Z-Boy Background
 Environmental Culture
 Environmental Policy
 Environmental Management & Sustainability Systems (Structure)
• Enhancing Furniture’s Environmental Culture (EFEC)
• Sustainable By Design (SBD)
 Metrics
 Manufacturing Operations
 Distribution Centers
 Retail Stores
 Summary

3. La-Z-Boy Background
• Two Upholstered Manufacturing Business Units
– La-Z-Boy Residential Manufacturing and England
• Three Casegoods Import Business Units
– Kincaid, American Drew, and Hammary
• LZB Logistics
– Over-The-Road Trucks and Trailers
– 3rd Party Logistics
• Distribution Centers
• Retail Stores

4. La-Z-Boy Tennessee
• Today’s employment campus-wide is
approximately 1400 employees.
• Current total square feet of both plants
combined is approximately 1.2 million
square feet.
• The complete facility covers an area of
approximately 56 acres, of which, about
27 acres are occupied by buildings.

5. Cellular Manufacturing
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6. Distribution Centers
Welcome to La-Z-Boy’s WCDC

7. Company-Owned Retail Stores

8. • Environmentally Conscious Founders
• Recline, Relax, Recuperate – 1930s
• Wood Fuel Fired Boilers – 1960
• Energy Management Systems – 1979
• Electricity Co-Generation Plants – 1982
• Energy Efficient Lighting Systems – 1986
• Negative Dust Collection – 1989
• Natural Gas Contracting – 1995
Culture of Sustainability

9. Environmental Policy

10. • Enhancing Furniture’s
Environmental Culture (EFEC)
• Registration by the American
Home Furnishings Alliance
• Eleven EFEC Elements
Environmental Management Systems
• Sustainable by Design (SBD)
• Registration requiring integration
of environmentally sustainable
business practices into our
manufacturing operations and
sourcing strategies
• Reducing Environmental
Footprint

11. Culture - Plant Recycle Labeling

12. Culture - Recycling and Trash Route
We are pulling both the Recycling Cart
and Trash Dumpster on one Route
Examples of the Visual Aides that we have in
place throughout some plants.

13. Culture - Miscellaneous Recycling Methods

14. Culture - Employee Engagement and Communication
La-Z-Boy Tennessee Exhibits Good Corporate Citizenship
Recycling Crates and EFEC DATE : 03/06/2017
The Enhancing Furniture’s
Environmental Culture
(EFEC) is a great program
within the furniture
industry that initiates
recycling of all our waste
materials. Currently the
Leather Cutting Center has
large crates that we are
allowing employees to take
home for raised bed
gardening this summer.
You could line the crates with landscape
fabric to reduce weeds, add more wood, or
anything that would make gardening easier
for you! Pick up your crates in the back of
LCC by the dumpster. You will need to bring
your own truck and a helper to load the
crates.
Each crate is 7.5 ft x 3.5 ft x 2.0 ft.
No signatures required this week. Thank you.

15. Initial La-Z-Boy Residential Manufacturing Early Metrics
15

16. Initial La-Z-Boy Residential Manufacturing Early Metrics
16

17. Initial La-Z-Boy Residential Manufacturing Early Metrics
17

18. Schneider Partnership – Next Level
• Strategic Energy Sourcing
– In-Depth Evaluations & Budget Forecasts by Site
– Tariff versus Transport Analysis (Most Economical Commodity Cost)
– Extended Payment Terms Up to 45-Days
• Rate Analysis for Regulated (Non-Competitive) Energy Markets
• Utility Bill Management and Payment
– Electricity, Natural Gas, Water and Sewer
– Consolidated 635 Monthly Utility Bills into 8 Monthly Payments
• Identification and Correction of Billing Errors
• Resource Advisor
– Energy and Sustainability Management Software Platform
– Enhance Methods to Increase Energy, Water, Waste and Recycling Conservation
UTILIZE RESOURCE ADVISOR TO CONTINUE IMPROVING OUR SUSTAINABLE CULTURE!

19. RA Home Pages

20. Total Utilities Cost Chart

21. EFEC Manuals

22. Waste to Energy Example

23. Other Waste and Recycling Data

24. Zero Waste to the Landfill
• South Florida Distribution Center
• Mid Atlantic Distribution Center
• Mid West Distribution Center
• West Coast Distribution Center
• LZB Mfg. Redlands, CA
• LZB Mfg. Siloam Springs, AR
• LZB Mfg. Neosho, MO
• LZB Mfg. Dayton, TN
• LZB World HQ

25. Revenue Producing Recycling
Normally $ 4 M to $ 5 M per year, and normally greater than 60,000,000 pounds per year (> 94% recycle/reuse)!

26. Distribution Center Reuse / Recycling
The distribution centers reuse
cardboard boxes, foam, and wood
packaging. The also have Styrofoam
densifiers!

27. Electrical Use and Cost

28. Power Monitor - Electrical Average Current

29. Power Monitor – Electrical Average Current

30. Electric Reduction Efforts One Day Snap Shot
3030
6:00am Start 2:30pm Stop
4/21/2010
4/21/2011

31. • Total electrical cost reduced 8%
• Electrical use per EUP reduced 36%
Additional Results – Electricity
Good
Highly efficient equipment such as high efficiency and
variable speed pumps, motors, and fans along with
variable speed air compressors.
Efficient lighting systems such as T-8 and T-5 florescent
lights while currently converting to LED lights.

32. • Natural gas cost reduced 73%
• Natural gas use per EUP reduced 65%
Additional Results – Natural Gas
Good
Replaced old inefficient (less than 60%) natural gas steam
boilers with new highly efficient (98%) natural gas water
heaters.
Improved heating and air conditioning individual
programmable control panels.

33. • Used 34,500,000 gallons less in FY17 than in FY08
• Water cost reduced 47%
• Water use per EUP reduced 63%
Additional Results – Water
Good
Low-flow sinks and hand dryers (waste reduction).
Replacing old inefficient (less than 60%) natural gas
steam boilers with new highly efficient (98%) natural gas
hot water heaters saves a lot of water too!

34. • Heating, Cooling and Energy Efficient
• Storm water bio retention swales
• “Zero Waste to the Landfill” location
• Reduced light pollution through
appropriate design of outdoor lighting
World HQ – LEED Silver

35. • “Innovative Green Design Award” presented by the New York
Home Magazine
• American Society for Furniture Designers Pinnacle Green Leaf
Award
• Zero Waste to the Landfill
• AHFA Sage Award Finalist
• AHFA Environmental Excellence Award
• AHFA Annual Employee Environmental Leadership
• LZB Dayton, Tennessee Green Star Partnership (Three Star)
• Leadership in Energy and Environmental Design (LEED)
Sustainability Awards

36. Summary
ENVIRONMENTAL STEWARDSHIP
 Multi-Facility Participation
– AHFA EFEC Program
– Sustainable by Design
 Achieving Results
– World Headquarters Silver LEED Certified
– Tennessee Green Star Partnership Award
 Conserving Resources
– “Zero Waste to the Landfill” initiative
– Recycling/reusing about 94% of waste
– Eliminating 11MM lbs. of waste
– Significantly reduced utilities consumption
 Continuing Initiatives
– Converting to LED lighting
– Energy and Sustainability Management Software
– Social Performance and Compliance Program
Committed to Environmentally Sound
and Sustainable Business Practices

37. Thank you!