Dear Stakeholders,

Born in a lab at NC State University in Raleigh, N.C. in 1987, Cree now has offices around the world and a more than 30-year history of delivering technology solutions that enable our customers and society to do more with less. From young and ambitious roots, we have grown into a world-renowned commercial supplier of the fastest, most efficient semiconductor components ever available, enabling greater efficiency and performance, smaller systems and lower costs. We offer our customers both the advantages of working with a large enterprise, leveraging Cree’s industry-leading brand, global footprint, financial stability, scale, expertise and people, as well as the advantages of working with a nimble, fast-moving growth company.

We relentlessly pursue the development and commercialization of the technologies and products that enable other industry pioneers to dream bigger and bring their visions to life. In fact, our technologies are at the heart of today’s biggest industry transformations, including the move to electric vehicles and autonomous driving, wireless infrastructure that will unlock the potential of smart cities and the pursuit of ubiquitous power storage that will enable the broader use of alternative energy. To that end, our commitment to corporate social responsibility helps guide our global team through ethical standards, policies and practices.

As we execute our vision, Cree is dedicated to processes that are best for our environment, our community and our employees. Over the past year, we have implemented organizational changes across the company aimed at streamlining our procedures for a more productive future. We are dedicated to sustainable practices that enhance economic value for ourselves, as well as our customers, including environmental stewardship and social responsibility initiatives.

For example, our products enable customers to deliver solutions that significantly reduce greenhouse gas emissions by displacing fossil fuel usage in transportation and energy generation and storage. In 2017, our lighting, LED, power, and radio frequency products produced will save approximately 420 million MWh and 210 million metric tons CO2 equivalents over their lifetimes compared to less efficient alternatives.

In our manufacturing operations, we strive to minimize resource use and reduce the environmental impact of our production processes. To better inform our customers, we are committed to transparency of our GHG emissions, waste generation, and water and energy consumption. In fact, Cree doubled its manufacturing energy productivity from 2011 to 2014, and pledged to double it again by 2020 through EP100. We met that goal three years ahead of schedule in 2017. We measure our energy productivity in terms of our product output: lumens produced per unit of energy consumed during manufacturing. As we look ahead, a new company-wide energy productivity goal that includes all of our semiconductor products in addition to LED and lighting products is currently being developed.

We consider the health and well-being of each individual associated with the Cree community as our primary responsibility. Cree’s products are innovatively designed and undergo extensive testing to protect the health and safety of our customers, and we consistently execute programs that ensure the health and safety of our employees. With more than 6,000 employees from over 60 countries, our workforce is valued and critical to our success. We have established stringent rules for material sourcing, supplier selection, and employee health and safety, while also promoting community engagement and education programs.

Within our communities, Cree directs our employee efforts and financial support to events and organizations that directly promote the increased adoption of energy-efficient technologies. Our national initiative with Habitat for Humanity provides an ongoing employee volunteer program and has provided more than 150,000 LED lights to Habitat homes nationwide.

Sustainability requires continued evaluation, assessment and action to unlock the potential of today’s science in helping to achieve greater worldwide sustainability. Cree is prepped and ready to pursue the necessary solutions to global efficiency challenges. At Cree, there is no finish line. There is only the future, and we will continue to pursue it for all.

We appreciate your interest in Cree and hope you find this information useful.

Sincerely,

Gregg Lowe

Gregg Lowe
President and CEO