Environment, Health and Safety Report 2004

Table of Contents: EHS Commitment ............................................................................ 2 EHS Policy ........................................................................................ 3 EHS Performance............................................................................. 4-7 – Goals and Targets – Waste Management – Sustainable Design – Energy and Water Conservation – Product Stewardship – Health and Safety – EHS Enforcement – EHS Investments Community Relations and CARE – Community Action Resources for Employees................................ 7 Special Accomplishments, Recognition and Awards .................... 8

Environment, Health and Safety Report 2004

Xilinx Commitment to Environment, Health and Safety Welcome to the latest Xilinx Environment, Health and Safety (EHS) report. I believe that good EHS performance is part of good business in terms of reducing business risk, identifying opportunities for cost savings and delivering products with improved performance that meet our customers’ expectations. This report is meant for a wide audience. Customers want to know they are making their purchases from an environmentally responsible company that is concerned not only with their health and safety, but also with the health and safety of its employees, and employees of companies in its supply chain. Shareholders want to be confident that their company is achieving a proper balance between generating a return on their investment and the well-being of the communities where we operate. Communities where we operate have a right to expect that Xilinx will conduct its business in an environmentally responsible way and that we will exercise concern over the health and safety of the community members and our employees. Finally, employees want to know that their company complies with both the letter and the spirit of laws designed to protect them. Looking ahead, we are intent on achieving world-class results in our Environment, Health and Safety performance. With growing support by Xilinx people worldwide, we are continuing to pursue excellence in these areas — as we are in all essential areas of our business. Dr. Evert Wolsheimer Vice President, Quality and Reliability Environment, Health and Safety

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Environment, Health and Safety Report 2004

Environment, Health and Safety Report 2004

Environment, Health and Safety Policy Xilinx is committed to the protection of the environment and to providing a safe and healthy workplace for the Xilinx community. A positive and proactive approach to EHS management is consistent with the spirit and intent of our corporate values. Specifically, we commit to: • Comply with regulatory, industry, customer and other applicable Environment, Health and Safety requirements • Manage operations in a manner that will minimize risk to the environment and the Xilinx community • Drive environmentally sound business practices incorporating EHS considerations into our business planning and product development processes • Seek to conserve natural resources through responsible use of energy and materials • Work together with our suppliers and contractors to enhance our EHS performance • Continually improve our EHS performance with an emphasis on pollution prevention and accident avoidance through minimizing waste and accident exposure at the source • Train and develop employees to conduct their work in a manner that will achieve the organization’s policy and objectives • Communicate the policy to employees and all interested parties and make the policy available to the public The EHS policy will be achieved through the implementation and maintenance of the EHS management system at all levels of the organization.

Environment, Health and Safety Report 2004

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Environment, Health and Safety Report 2004

Goals and Targets

Waste Management

Our long term strategic environment, health and safety (EHS) goal is management systems excellence. We believe that a robust EHS management system will enhance the Xilinx safety culture, reduce injuries and worker compensation costs, reduce our impact on our environment, and drive continuous, sustainable improvement at our facilities.

Protecting the environment we live in has long been a value of Xilinx employees. Our employees recognize the burden that waste disposal places on local landfills and the importance of recycling our wastes to reduce this environmental impact in our communities and to conserve natural resources. In 2004 our two main manufacturing operations generated 951 tons of waste for disposal. Xilinx employees diverted over 593 tons or 62.4% of this waste from landfills through recycling and composting programs.

Our goals and targets for 2005 and beyond are: • Successful recertification of our environmental management systems to the new ISO14001:2004 standard • Certification to a corporate ISO14001 environmental management system for Xilinx • Implement a comprehensive service provider management program • Implement an automated external defibrillator (AED) program • Increase recycling through site specific goals and targets – Increase recycling to 90% in Xilinx Ireland – Increase recycling of aluminum, glass and plastic by 15% in Xilinx San Jose • Develop 100% material declaration format for our products to assist our customers with RoHS compliance • Reduce the estimated water consumption of one building on our Xilinx San Jose campus by 30% through introduction of water efficient technologies • Implement and self certify our environmental management system in Xilinx Colorado and Xilinx Albuquerque to the new ISO14001:2004 standard • Implement and certify our environmental management system in Xilinx Singapore to the new ISO14001:2004 standard

The increase in recycling continues to be driven by site-specific waste minimization programs. Xilinx San Jose increased its waste minimization goal for 2004 from 50% to 60% of solid, non-hazardous waste and recycled and composted 61.1% of its waste. The decision to mulch and compost waste from tree trimming and to recycle waste from two major renovation projects were the greatest contributors to the overall increase. Xilinx Ireland increased its recycling goal to 80% and recycled 72.2% overall. Recycling efforts in 2004 were a success, but we can further reduce our impact on the environment in 2005 by continuing to promote recycling efforts and setting site-specific goals and targets. Xilinx Ireland will increase recycling to 90%. Xilinx San Jose will increase its recycling of aluminum, glass and plastic by 15%, and Xilinx Colorado and Albuquerque will establish baseline recycling data and set site specific goals once baseline data is established.

Our documented goals and targets for 2004 and our progress toward these goals are provided below: 2004 Target

Status as of June 2005

Increase recycling from 50% to 60% in Xilinx San Jose

Recycled 61.1% of solid, non-hazardous waste

Increase recycling to 80% in Xilinx Ireland

Recycled 72.2% of solid, non-hazardous waste; Recycled over 80% in the months of October and November

Implement a comprehensive service provider management program

Program implementation in progress

Reduce electricity use by 2% in our Xilinx Ireland facility

Reduced electricity use by 7% in 2004 compared to 2003

Reduce gas usage by 2% in our Xilinx Ireland facility

Reduced gas consumption by 24% 2004 compared to 2003

Integrate our existing environmental management systems into a single EMS for Xilinx

Completed

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Environment, Health and Safety Report 2004

Environment, Health and Safety Report 2004

Sustainable Design

In planning and executing a major building renovation to be completed in 2005 at the Xilinx San Jose campus, the Facilities group incorporated the following elements of sustainable design: • Bringing natural light into the building • Maximizing energy efficiency by using computer controlled lighting and HVAC systems • Installing dual pane glass and cool roofing to reduce heat load • Using building materials with recycled content, such as carpet and cubicle panel fabric • Save existing interior doors and sidelights for re-use at offices and conference rooms • Choose materials with low VOC’s (volatile organic compounds) to minimize off-gassing • Installing low flow water faucets in restrooms and waterless urinals in the men’s restrooms to minimize water use

Per Capita Electricity Consumption 13400 13200 13000

Kilowatt hour

Sustainable design, also known as green design, is the practice of approaching facility management with an emphasis on minimizing the impact to our environment. Whether in a construction project or an ongoing maintenance operation, the Facilities, Real Estate and Workplace Service group at Xilinx is committed to following sustainable design principles.

12800 12600 12400 12200 12000 11800 11600 11400

CY 2003

CY 2004

Water consumption is another impact we have on our environment. However this was not a metric that was monitored at each of our major manufacturing facilities in 2004. We plan to reduce our consumption of water in 2005 through site specific goals and targets. This data will be collected and reported in the 2005 EHS Report.

Product Stewardship Energy and Water Conservation Energy conservation is an important component of the Xilinx Environment, Health and Safety Management System. Xilinx used 26,594,759 kilowatt hours of electricity at its two major manufacturing facilities in 2004, which amounts to 12,028 kilowatt hours per employee. Total consumption of electricity increased by 1.5% compared to 2003 and 3% compared to 2002. This increase was fueled by overall growth of the company, increased production capacity and key infrastructure upgrades. Although energy consumption increased overall, per capital consumption of energy decreased by 9% relative to 2003. Xilinx San Jose decreased per capita energy consumption by over 4% in 2004. Xilinx Ireland reduced its overall consumption of electricity by 7% and reduced its consumption of natural gas by 24% in 2004.

Environment, Health and Safety Report 2004

RoHS Compliance The European Union has passed legislation restricting levels of cadmium, mercury, hexavalent chromium, lead, polybrominated biphenyls and polybrominated diphenyl ethers in electrical and electronic equipment (European Directive Restriction on the Use of Certain Hazardous Substances 2002/95/EC, commonly referred to as RoHS). We have been diligently working to comply with the spirit and intent of the requirement. Some companies have chosen to become technically compliant by actually adding lead to their products, for example some companies have substituted high lead material in place of the tin-lead solder typically used. By a strange twist of the regulations, adding lead in this way can accomplish technical compliance. We have chosen not to do this. We felt adding more lead to our products to be compliant with RoHS was bad for the environment and violated the spirit of the RoHS directive. Due to technological limitations with our Flipchip packages, we were not able to comply with the lead restriction in the RoHS directive. Again, we decided not to use high lead solder. Instead, we worked through a third party to petition the Technical Adaptation Committee for a new exemption to the RoHS standard specifically for lead in eutectic solder in solder bumps on our Flipchip BGA packages.

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Environment, Health and Safety Report 2004

Customer Satisfaction Our customers need to be compliant to RoHS. We help our customers by making information about the material and chemical make-up of our products readily available. Over the course of 2004, we worked to make Material Declaration Data Sheets (MDDS) available for our products. These MDDSs contain pertinent information about the materials and chemical substances in our products and are provided to customers upon request. We plan to make this information available on line to our customers in 2005. We also have a goal to develop 100% MDDSs in 2005 so our customers can be confident our products are compliant with the RoHS directive.

Incident Rate The incident rate for our main manufacturing facilities was 0.78 incidents per 100 full time employees. This is the first year a worldwide incident rate has been calculated including our facilities in North America and Ireland and will be the baseline for comparison in the future. The incident rate at the Xilinx San Jose facility was 1.02 incidents per 100 full time employees, which was unchanged from 2003 and down 50% from 2000. The incident rate at the Xilinx Ireland facility dropped 40% in 2004 to 0.54 incidents per 100 full time employees.

Health and Safety

1.2

Xilinx is committed to the protection of Xilinx employees, contractors and other visitors to our Xilinx facilities. We demonstrate this commitment through training programs, risk assessment, operational controls and other creative ways. For example, Xilinx Ireland held an Environment, Health and Safety Week to coincide with the European Safety Week in 2004 to raise awareness of health and safety at the campus. Employees were offered free eye exams and influenza vaccinations.

1.0

A key driver in the success of any health and safety program is management commitment. In 2004, the executive staff expressed their commitment to employee’s health and safety by adding it to our Environmental Policy. We now have a Xilinx ‘Environmental’ Policy that includes our commitment to Health and Safety.

Lost Workdays The lost workday incident rate was 0.23 lost workdays per 100 full time employees. This is also the first year a worldwide lost workday incident rate has been calculated and will be the baseline for comparison in the future. The incident rates for lost time injuries in Xilinx San Jose was 0.32 lost workdays per 100 full time employees down slightly from 2003. Xilinx Ireland had an exemplary safety record with no injuries resulting in lost workdays.

Xilinx Injury and Illness Incident Rate Xilinx Injury and Illness Incident Rate Xilinx San Jose Incident Rate

0.8

Xilinx Ireland Incident Rate

0.6 0.4 0.2 0.0

2002

2003

2004

Industry Comparison Xilinx is a ‘fabless’ semiconductor company engaged in limited product testing and manufacturing. The majority of Xilinx employees are engaged in product design and engineering and supporting activities. Xilinx compares its incident rate to two North American Standard Industry Codes; NASIC 334413 (formerly SIC 3674) – Semiconductors and Related Devices and NASIC 541512 (formerly SIC 7372) – Computer and Data Processing Services. Neither Industry Code is an ‘apples to apples’ comparison to Xilinx because of the nature of our operations and the limitations of the NASIC system, so we compare ourselves to both. On a company wide basis, we were 62% below other semiconductor and related device companies and 67% above other computer and data processing service companies in 2003. 6

Environment, Health and Safety Report 2004

Environment, Health and Safety Report 2004

Accident Claims Computer-related repetitive injuries remain the predominant cause of injury at Xilinx representing 50% of total OSHA reportable injury claims in 2004. We saw an increase of computer-related injuries in 2004. This was attributed in part to an increased effort to raise awareness, increase training and increase the number of workstation evaluations. We expect to see a reduction in computer-related repetitive injuries in 2005 from our efforts in 2004. Material handling was the second leading cause of injury representing 20% of the total injuries. Cuts/punctures were the third leading cause of injury representing 15% of the total injuries.

Injury by Type Slips, trips, falls 10%

Struck by/against 5% Cut/Puncture 15% Material handling 20%

Repetitive motion (computer-related) 50%

Miscellaneous/ other 0%

EHS Enforcement Xilinx sites received no fines or citations for violation of worker health and safety or environmental regulations in 2004.

EHS Investments and Returns We do not invest in environment, health and safety because it saves us money. We invest in EHS because it is the right thing to do for our employees, our community and our environment. The total operating budget for the Environment, Health and Safety group in 2004 was $180,000. Beyond our baseline budget, we invested in several significant EHS projects in 2004. Of those site specific projects that were tracked, such as upgrading our fume cupboards and exhaust system and installing a new footpath in our Xilinx Ireland campus and increasing parking lot illumination, improving fall protection at critical roof top locations and creating designated walking paths between buildings at the Xilinx San Jose campus, we spent an additional $230,000 on improving our EHS systems and EHS performance. EHS investment did result in some cost reduction. Xilinx Ireland saved nearly 90,000 Euros due to energy conservation programs in 2004.

Environment, Health and Safety Report 2004

Community Relations and CARE — Community Action Resources for Employees At Xilinx, we are committed to strengthening and improving the quality of life in our local communities. We foster employee participation in the community through volunteerism and serve as a charitable giving leader by supporting innovative and results-oriented programs. By leveraging our human and financial resources, we seek to educate the next generation and make our communities healthier places to live and work At various Xilinx sites, CARE – Community Action Resources for Employees committees have been created as branches of the Corporate Giving Committee to facilitate local community involvement and review donation requests of less than $5,000. CARE includes grants to non-profits, community out-reach (such as food drives, clothing, etc.) and volunteer opportunities. Through these committees we have sponsored or supported many community activities such as: Special Olympics Walk for AIDS Silicon Valley Leukemia & Lymphoma Society “Team In Training” Rebuilding Together Silicon Valley American Cancer Society Daffodil Days Irish Red Cross (Iran earthquake) People in Need Youth Horizons Albuquerque Rape Crisis Center All Faiths Receiving Home Barrett House Our Center M.E.S.A. Community Adopt-a-School programs (Comanche Elementary, Rocky Mountain Elementary School, Oster Elementary) Stanford Blood Drive

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Environment, Health and Safety Report 2004

Special Accomplishments, Recognition and Awards 2004 Xilinx Ireland – Zero Lost Workday Cases Congratulations to our Xilinx Ireland facility for zero injuries resulting in lost workdays. This typifies the exemplary EHS program and dedication of Xilinx employees in Xilinx Ireland. Xilinx Colorado – Field Programmable ‘Goat’ Arrays Xilinx Colorado used an unusual, but environmentally-friendly way of dealing with their overgrown grasses and weeds. The marshy nature of the land makes it non-conducive to mowing, and the Facilities, Real Estate and Workplace Service group did not want to use pesticides. Instead they decided to use a local goat grazing service, which is an environmentally sound solution to grass and weed management. Xilinx is Red Ribbon sponsor of Silicon Valley Walk for AIDS. 2003 Xilinx becomes Sony Green Partner. Xilinx is Red Ribbon sponsor of Silicon Valley Walk for AIDS. Xilinx Ireland volunteers at the 2003 Special Olympics Summer Games, held for the first time outside of the US. 2002 Xilinx San Jose Environmental Management System becomes certified to ISO14001:1996. Xilinx Colorado receives 2002 Renewable Energy in Buildings Award from the Colorado Renewable Energy Society. Xilinx San Jose earns 5,000 dollar rebate from the City of San Jose for implementing an effective recycling program. Xilinx ships first RoHS compliant products to customers. 1999 Xilinx Ireland Environmental Management System becomes certified to ISO14001:1996. Xilinx initiates lead-free (a.k.a. RoHS compliant) program for Xilinx products. 8

Environment, Health and Safety Report 2004