Conflict Minerals Update B Cubed Consulting Conflict Minerals Update Brenda B. Baney B Cubed Consulting, Inc May 17th, 2017

Agenda CFSI/AIAG Outreach update CMRT 5.0 Latest News Connection to IPC 1755 Standard Updates from 4.x Versions Timing Latest News

AIAG Set Team members AIAG Smelter Engagement Team & collaborate towards a common set of goals 3

Process Flow from Alleged to Compliant Smelter CFSI Compliant (passed audit) Active (signed up for audit) Alleged Smelters Compiled from CFSI member company smelter lists Confirmed Probable Smelters AIAG outreach CFSI smelter confirmation CFSI research Not a Smelter Not a Smelter Not Participating in audit program

AIAG SET Accomplishments Current CFSI or CFSI SET Member Activity: Outreach Probable Smelter Confirmation Research Purpose: Encourage known smelters to participate in Conflict Free-Audit & become Conflict-Free certified Purpose: Disposition alleged smelters as probable or not a smelter Purpose: Confirm probable smelters in order to include in Smelter Reference List AIAG has researched over 600 alleged smelters AIAG reached out to nearly 70 probable smelters AIAG has contacted over 132 known smelters On-line research, calls, letters Letters, calls, visits Letters, calls

CMRT 5.0 The Conflict Minerals Reporting Template or CMRT Updating from last years Revision 4.20 to 5.0 to be released by CFSI (Conflict Free Sourcing Initiative). AIAG has been a strong industry partner of CFSI since 2011. CFSI administers the audit program which uses the OECD global standards to determine which smelters and refiners can be validated as “conflict-free”. See CFSP on the CFSI site. www.conflictfreesourcing.org

CMRT vs. IPC 1755 Standard EICC-GeSI first created the Conflict Minerals Reporting Template (CMRT), then formed the Conflict Free Sourcing Initiative (CFSI), which worked with the IPC 2-18H Standards committee to create the IPC-1755 standard CMRT: primary method of data collection, conforms to IPC-1755 (Excel) IPC-1755 XML: standard protocol for CM data transmission IPC 2-18H committee defines the IPC-1755 data entry fields & questions, while CFSI provides formatting, explanations, instructions, and smelter lists including Smelter IDs, names, etc. E-30 committee for white paper, guidance doc, etc… IPC Standards committee participation is open to all, with no membership requirement, but you must often attend major (voting) meetings in person Companies are beginning to experiment with sending CM Declarations directly computer-to-computer, without human intervention (emailing)

Proposed changes Impacts CMRT Declaration Tab - Company Information Section Contact Information Country Current: Country names are used, not according to a standard. New: Use ISO 3166-1 country names and 2-character codes for the country where contact is located. Contact Information State Current: State/province names are used, not according to a standard. New: Use ISO 3166-2 state/province names and codes for state or province where contact is located.

Proposed changes Impacts CMRT Declaration Tab - Due Diligence Section Q1: Current: Is the 3TG intentionally added to your product? New: Is any 3TG intentionally added or used in the product(s) or in the production process? Q2: Current: Is the 3TG necessary to the production of your company’s products and contained in the finished product that your company manufactures or contracts to manufacture? New: Does any 3TG remain in the product(s)? Q5: Current: Have you received data/information for each 3TG from all relevant suppliers? New: What percentage of relevant suppliers have provided a response to your supply chain survey? Current:  100%  > 75%  > 50% < 50%  <25%  None New:  100%  > 90%  > 75%  > 50%  <50%  None

Proposed changes Impacts CMRT Declaration Tab - Policy Section Question A Current: Do you have a policy in place that addresses conflict minerals sourcing? New : Have you established a conflict minerals sourcing policy? Question F Current: Do you collect conflict minerals due diligence information from your suppliers which is in conformance with the IPC-1755 Conflict Minerals Data Exchange standard [e.g., the CFSI Conflict Minerals Reporting Template]? New: Does your company conduct Conflict Minerals survey(s) of your relevant supplier(s)? Question G Current: Do you request smelter names from your suppliers? New: {Question has been removed} Question J Current: Are you subject to the SEC Conflict Minerals rule? New : Is your company required to file an annual conflict minerals disclosure with the SEC?

Proposed changes Impacts CMRT - Smelter List Tab Smelter Reference Name: “Standard” Smelter Names must be English characters (extended ASCII ISO 8859 Latin-1) Smelter Name: “Typed-In” Smelter Name may be in any language (UTF-8) Smelter Country: The ISO 3166-1 two-character country name and code where the smelter for the 3TG is located. "Unknown" and “Not Listed” are also permitted. This field is mandatory. Smelter State/Province: ISO 3166-2 state/province names and codes for state or province where the smelter is located. This field is optional. Some fields will only be unlocked when data is needed for additional of new ‘Smelters not listed.’ Fields/Columns may be hidden unless needed.

Smelter List - new country dropdown

Timing for CMRT 5.0 release Postponed 2 weeks to allow for continued testing of all new features Planned May 2nd to send to service providers May 12th public statement and release of new template on www.conflictfreesourcing.org

U.S. Legislation SEC is reviewing their enforcement activities as they try to resolve uncertainty April 3rd ruling by the District Court upholding that the Dodd-Frank rule violates companies 1st amendment rights by forcing disclosure of ‘conflict-free’ or ‘not conflict-free’ status Department of State seeking input on Responsible Conflict Mineral Sourcing.  The comment period was open until April 28, 2017.  Senate Hearing about continuation of Dodd-Frank took place April 5th, 2017 with input from industry, social societies, and a regional perspective. While attendees noted mixed results the group mostly supported a continuation of conflict minerals data gathering efforts with a focus on removing the portions of the rules that increased costs and burden. Where will this end up? Unknown at this time, although several global companies have committed to continued actions as part of their social responsibility initiatives. AIAG has their Annual Conflict Minerals Industry Briefing June 7th, 2017 www.aiag.org

Backup

AIAG Conflict Minerals Workgroups Conflict Minerals Subgroups – Actions and Stakeholder Involvement AIAG Conflict Minerals Workgroups AIAG Smelter Engagement Team (SET) Conducts outreach encouraging smelters to participate in CFSI CFSI Engagement Participates in key Conflict Free Sourcing Initiative (CFSI) groups to foster cross-industry engagement on smelter audit certifications and other conflict mineral reporting processes Communications/Events Develops strategies for CMWG stakeholder outreach; identifies potential target audiences and communication opportunities(e.g., events, media, etc.) Due Diligence Creates/supports initiatives to develop tools & resources to assist companies in their reporting processes Industry Best Practice Recommendations/drafts information to communicate common process for the industry Stakeholder engagement is a core element of the work group’s strategy. This chart and the next one you will see, list the subgroups identified to focus on specific projects. The gray shaded areas highlight many of the activities in which we are currently engaged in or support. Timing to cover: <1 minute

AIAG Conflict Minerals Workgroups Conflict Minerals Subgroups – Actions and Stakeholder Involvement AIAG Conflict Minerals Workgroups IPC Liaison Conveys input on the cross-sector conflict minerals data exchange standard iPCMP User Group Focuses on due diligence data reporting activities from a user viewpoint Minute-Takers Captures CMWG meeting minutes and submits to AIAG for processing Technical Information Contributes industry expertise (materials composition, IMDS, etc.) for the enhancement of tools & resources Training & Education Supports CMWG on-going efforts to create awareness of conflict minerals reporting, and the resources available to assist the supply chain The resources referenced are an example of the tools you can find on our website. Timing to cover: <1 minute