NATIONAL PACKAGING COVENANT

July 2008 – June 2009

ANNUAL REPORT

FOR

VTECH TELECOMMUNICATIONS
(AUSTRALIA) PTY LTD

(FORMERLY LISTED UNDER INGRAM MICRO PTY LTD COMMS

DIVISION)

Head Office:
24 GILBY ROAD
MOUNT WAVERLEY VIC 3149

Contact Officer:
Craig Matthews
Operations Manager
Email: craig_matthews@vtech.com

Endorsed by:
Mark Franklin
Managing Director
VTech Telecommunications (Australia) Pty Ltd
Company profile
VTech Telecommunications is contracted by Telstra Corporation to source,
engineer, support, sell and distribute a range of Telstra branded telephony
products. This range includes:

• Cordless Telephones
• Corded Telephones
• Answering Machines

The company employs approximately 25 staff involved in sales, marketing,

sourcing, distribution, customer call centre and warranty support. The annual
turnover is approximately AUD30 million.

This Action Plan affects the company business at the following sites:

Head Office:
24 Gilby Road
Mount Waverley VIC 3149

Executive Summary
A summary of the continuing Product Stewardship commitment achievements
for the period is included as part of this report.

Also included is a summary of how the seven key strategies of the

Environmental Code of Practice for Packaging have been adopted by VTech.

VTech has also gathered data over the period covered by this report as
required by the covenant in accordance with its type of operation. VTech acts
as both a Brand Owner and as part of the Packaging Supply Chain. This data
has also been submitted into the IDAS system.
Product Stewardship
As VTech imports all of its primary and secondary packaging and represents
only a relatively small percentage of market share of its major suppliers, the
impact and affect it can have on the packaging processes is limited. The
suppliers used by VTech are however heavily weighted towards supplying
major European markets such as the France, Germany, Italy, Spain and the
UK where ever increasing pressure is being brought to bear to minimise
environmental impacts of products, production lines and packaging.

VTech products are packaged in a retail carton that is then packed in

multiples into a secondary packaging carton for transport from supplier to
distribution centre.

The secondary packaging of VTech products serves 2 major purposes.

1) To protect the goods in transit from the factory to the distribution centre
then to retail outlets.
2) To easily identify the products contained within together with relevant
purchase order information integral to stock receiving and reporting.

The retail packaging of VTech products serves 2 major purposes.

1) To protect the goods to ensure they are delivered to the consumer in

perfect condition.
2) To communicate the product attributes and benefits.

Design
In designing packaging for products all possible measures are taken to
achieve the above while limiting the amount of physical packaging required to
achieve the packaging objectives. These measures include various physical
tests whilst product is in packaging to determine packaging integrity and
conducting feedback sessions with major retailers to determine whether
maximum product communication is being achieved whilst minimising
packaging size.

Production
As for design, VTech strives wherever possible to minimise the physical
amount of packaging required to achieve the packaging objectives.

Distribution
During the period VTech has succeeded in decreasing the size of its retail
packaging, thus increasing the number of units per secondary carton. This
has made a significant impact on reducing the use of additional secondary
packaging materials in the distribution process.

All secondary packaging is now re-used in the distribution process, therefore

reducing the need for re-packing into new cartons.
Disposal
All of the VTech retail packaging is 100% recyclable paper/cardboard enabling
easy recycling by consumers through their local kerbside recycling programs.
All of VTech secondary packaging is 100% recyclable cardboard enabling
easy recycling by retailers through their own internal recycling programs.

Research
VTech conducts regular research into the improvement of product packaging
to continually minimise the physical packaging required. As mentioned
previously this takes place through various physical tests of the product whilst
in packaging to ensure the integrity of the product is maintained, with the aim
to reducing physical packaging used where possible.

Market Development
As stated VTech represents a small percentage of the total market share of its
major suppliers so has minimal impact on effecting a change to the use of
recycled content in its packaging and product. In saying that one major
supplier is currently investigating the option of using 100% recycled paper in
all product user guides and product wrapping materials. Once implemented
VTech will be able to capture and contribute data on the impact savings this
represents.

Education
This is something that to date VTech has not implemented. VTech is however
considering the option of an inclusion in all product user guides with regards
to recycling of packaging once product is removed and product as it nears the
end of its lifecycle.

Labelling
VTech places the Mobius Loop on all retail packaging together with the
statement “Telstra is committed to minimising its impact on the environment.
Please recycle the packaging of this product responsibly.” VTech is also
considering expanding this statement to include advice on how to dispose of
packaging responsibly, although require approval from the brand owner,
Telstra, to do so.

Wholesaling and Retailing

VTech restricts all point of sale, display and promotional materials to materials
that are 100% recyclable enabling easy recycling by retailers through their
own internal recycling programs once a program comes to an end.

Recycling and Reprocessing

As all retail and secondary packaging is 100% recyclable, VTech recycles all
packaging that it receives returned through its service centre, together with
any additional packaging customers may add for the return of products.

All secondary packaging is now re-used in the distribution process, therefore

reducing the need for re-packing into new cartons.
Environmental Code of Practice for Packaging
Although many aspects of the code are inherent in originally becoming a
signatory to the National Packaging Covenant, VTech has undertaken to
formally implement the Code to ensure it continues to meets it environmental
obligations.

Source reduction
All necessary measures such as various physical tests whilst product is in
packaging to ensure the product integrity is maintained with the outcomes of
testing guiding the areas where potential packaging reductions can be made.

Also the implementation of an increased primary unit quantity per secondary

carton to maximise transport efficiencies thus reducing fuel consumption and
amount of re-packaging required.

Potential for packaging reuse

The reuse of primary retail packaging is not feasible for VTech given the
cost/nature of the retail product being sold.

All secondary packaging is now re-used in the distribution process, therefore

reducing the need for re-packing into new cartons.

Recovery and recycling

As all VTech products are packaged within 100% recyclable primary and
secondary cartons the potential for its recycling at end of life is maximised.

Ability to incorporate recycled content

VTech represents a small percentage of the total market share of its major
suppliers so has minimal impact on effecting a change to the use of recycled
content in its packaging and product. In saying that one major supplier is
currently investigating the option of using 100% recycled paper in all product
user guides and product wrapping materials. Once implemented VTech will be
able to capture and contribute data on the impact savings this represents.

Minimising impacts of packaging

There are no toxic or hazardous substances used in the packaging materials
used by VTech. All packaging and product printing is undertaken with acid
free inks and unbleached paper used in product user guides and product
wrapping materials.

Propensity to become litter

VTech ensures that all packaging is 100% recyclable thus reducing the
potential of it becoming litter. The nature of the product i.e. for home/office use
and generally where the product is put into operation assists with the potential
for responsible recycling.
Consumer information
As all packaging is 100% recyclable paper/cardboard VTech places the
Mobius Loop on all retail packaging together with the statement “Telstra is
committed to minimising its impact on the environment. Please recycle the
packaging of this product responsibly.” This logo and statement appeared on
all products released up to September 2009. With new products the Mobius
Loop and “Please Recycle” now appears on retail packaging together with
The National Packaging Covenant logo.
Data for Covenant Key Performance Indicators – as reported
on the IDAS database where applicable
Data Table for KPI reporting quantities

The Key Performance Indicators that VTech has gathered data under as
required by the NPC Mk II as both a Brand Owner and as part of the
Packaging Supply Chain are; 1, 3, 4, 6, 16, 21, 22 and 26-29

NPC KPI 1
Total weight of consumer packaging

KPI 1A: Report tonnes of packaging by material type and source (local or
imported)

Locally produced packaging materials (tonnes per annum): VTech does not
utilise any locally produced packaging materials

Imported packaging materials (tonnes per annum):

Paper = 8.6 tonnes

Cardboard – Standard = 106.6 tonnes

Cardboard – Waxed = 0 tonnes

Cardboard – High Wet Strength = 0 tonnes

Plastics – Type 1 (PET) = 0 tonnes

Plastics – Type 2 (HDPE) = 0 tonnes

Plastics – Type 3 (PVC) = 0 tonnes

Plastics – Type 4 (LDPE) = 0 tonnes

Plastics – Type 5 (PP) = 0 tonnes

Plastics – Type 6 (PS) = 0 tonnes

Plastics – Type 7 (Other) = 0 tonnes

Glass = 0 tonnes

Aluminium = 0 tonnes

Steel = 0 tonnes

Composites = 0 tonnes

Other = 0 tonnes

KPI 1B: Tonnes of packaged product sold = 324.2 tonnes

KPI 1C: Ratio of product to packaging (by weight) = 33%

NPC KPI 3
Improvements in design, manufacture, marketing and distribution to
minimise the environmental impacts of packaging Page 4

VTech has succeeded in decreasing the size of its retail packaging, thus
increasing the number of units per secondary carton (increased from 8-10 to
10-12 units per carton on average). This has made a significant impact on
reducing the use of additional secondary packaging materials in the
distribution process.

VTech re-utilises these secondary cartons in the distribution of products to its

retailers.
NPC KPI 4
Changes to protection, safety, hygiene, shelf-life or supply chain
considerations affecting amount & type of packaging used

From a supply-chain perspective VTech re-utilises secondary cartons in the

distribution of products to its retailers. This potentially reduces the amount of
new secondary packaging materials used by approximately 34-35 tonnes per
annum.

NPC KPI 6
Volume of Non-Recyclable Packaging

KPI 6A: Enter the total weight of non-recyclable consumer packaging sold per
annum into the Australian market.

Plastics - Type 4 (LDPE) = 0 tonnes

Plastics - Type 5 (PP) = 0 tonnes

Plastics - Type 6 (PS) = 0 tonnes

Plastics - Type 7 (Other) = 0 tonnes

Non recyclable paper/cardboard = 0 tonnes

Composites = 0 tonnes

Total = 0 tonnes

KPI 6B: Total non recyclable packaging as a percentage of total packaging

sold = 0%

NPC KPI 16
Post-Consumer Recycling Facilities

KPI 16A: Do you provide collection facilities for post-consumer packaging

generated on-site?

Yes

KPI 16B: What types of on-site recycling facilities are provided?

Paper/cardboard – Yes

Plastics – Yes

Metals – No
Organics – No

Other – No

NPC KPI 21
Destination of Collected Packaging Waste

KPI 21A: Enter the estimated tonnage of consumer packaging sent for
recycling and to landfill from onsite collection facilities (refer to KPI 16)

(i) Consumer packaging from on-site collection which is sent for recycling

Total tonnes = 2.8 tonnes

Percentage of total waste = 533%

NOTE: this is a % of the total waste not recycled in any way

Percentage of total waste = 36%

NOTE: this is a % of the total materials received at collection facility unrelated
to consumer packaging – 93% of these unrelated material (plastics) are
recycled.

(ii) Consumer packaging from on-site collection which is sent to landfill

Total tonnes = 0

Percentage of total waste = 0%

NPC KPI 22
Environmental Code of Practice for Packaging

KPI 22A: Has the Environmental Code of Practice for Packaging been
formally adopted?

Yes

NPC KPI 26
Buy Recycled Purchasing Policy or Practices

KPI 26A: Have you adopted a buy recycled purchasing policy or practices?

No

KPI 26B: Provide examples or quantitative data from this adoption

Total amount of product purchased that has recycled content (tonnes) – N/A
NPC KPI 27
Establishment of baseline performance data

KPI 27A: Have you reported indicative baseline data (where available),
including qualifiers & assumptions, by 31 October 2007?

Yes

KPI 27B: Have you reported established baseline data by 31 October 2008?

N/A

NPC KPI 28
Annual Reporting against Action Plan

KPI 28A: Have you lodged your annual report by October 31 (for the
preceding year) that includes progress against baseline data, individual action
plans commitments, targets and timelines?
No, by 15th January 2010

NPC KPI 29
Demonstrated improvement and achievements against individual targets
& milestones

KPI 29A: Does your annual report clearly demonstrate continuous

improvement and performance against individual targets and timelines?

Yes