RoHS – perspectives of a PWB manufacturer 18 June 2008

Europe’s largest supplier of PWB´s AT&S at a Glance - Europe’s largest supplier of PWB´s One of the world’s top producers of HDI PWBs Production sites in Europe and Asia Supplier of PWB´s for Mobile Devices, Automotive and Industrial Applications 14% of the worldwide produced PWBs for mobile phones are from AT&S Worldwide Sales, Service, Technology and Supplier-Network Approx. 6,300 employees working in Austria, India, China, and Korea

AT&S Production Facilities Leoben-Hinterberg: ~1,360 people Fehring: ~440 people Klagenfurt: ~165 people Vienna, Headquarters: ~65 people Shanghai I+II+III: ~3,220 people Ansan-S.Korea: ~300 people Nanjangud-India: ~660 people Procurement&Sales Office in Hong Kong Design Centers: India and Germany 14 Sales Offices worldwide

AT&S Business Development Global Strategy AT&S Business Development 2007/08 2006/07 2005/06 2004/05 Total Revenue 332 Mio. EUR Total Revenue 375 Mio. EUR Total Revenue 467 Mio. EUR Total Revenue 486 Mio. EUR

AT&S Product-Portfolio Multilayer PCBs up to 22 layers Single Sided PCBs Double Sided PCBs HDI Microvia PCBs Applications: White Goods, Automotive Consumer, … Applications: White Goods, Automotive, … Applications: Industry, Automotive, Infrastructur, … Applications: Telecommunication, Automotive, Medical, … 5

AT&S Product-Portfolio Semi-flexible PCBs Flexible PCBs Rigid-flexible PCBs TC- PCBs (IMS Insulated Metallic Substrate) Applications: Automotive, Industrial, … Applications: Telecommunication, Medical, Consumer Applications: Industrial, Consumer, … Applications: Automotive, Illunimation, … 6

AT&S Business Units Mobile Devices Industrial Automotive AT&S Competence Centre AT&S Business Units Mobile Devices Industrial Automotive

Target Segments: Mobile Devices PM-Player Mobile Phones Consumer Handhelds Smart Phones (PDA) DSC - Digital Still Camera

Target Segments: Industrial Computer Instrumen-tation & Control Defense & Aerospace Medical Electronics Consumer

Target Segments: Automotive Body Electronics Advanced Driver Assistance Safety Powertrain Navigation, Infotainment AT&S Industrial

Environment … but there is no production of goods without considering … Environment 11

AT&S Management Certificates

AT&S Management Certificates

RoHS Directive 2002 / 95 EC Restriction of the use of certain hazardous substances in electrical and electronic equipment Lead Mercury Chromium VI 1,000 ppm PBB PBDE Cadmium 100 ppm

The directive applies to equipment as defined by a RoHS The directive applies to equipment as defined by a section of WEEE directive Large and small household appliances IT equipment Telecommunications equipment (although infrastructure equipment is exempt in some countries) Consumer equipment Lighting equipment – including light bulbs Electronic and electrical tools Toys, leisure, and sports equipment Medical devices (currently exempt) Monitoring and control instruments (currently exempt) Automatic dispensers

RoHS Deca – BDE exempted from RoHS Directive on 15 October 2005 (based on conclusios of EU 10 year environmental and human health risk assessment) 1 April 2008 Commission Decision has been annuled (procedural errors at establishing the exemption) no longer use from 1 July 2008

RoHS Review of RoHS EC placed an order with Öko-Institut for a study of further hazardous substances Investigations on inventory of other substances in EEE risk management of hazardous substances possible substitutes policy options for candidate substances Deadline for final report: probably end of June 2008

Öko-Institut‘s proposals RoHS Öko-Institut‘s proposals candidate list: 3,000 substances Stakeholder consultation Candidate list shortened up to 46 substances

Expert Workshop on Hazardous Substances in EEE RoHS Expert Workshop on Hazardous Substances in EEE not regulated by RoHS 6 May 2008 in Brussels

Criteria for selection of high priority substances (I) RoHS Criteria for selection of high priority substances (I) Substances of very high concern (SVHC) as defined by REACH Carcinogenic category 1 or 2 Mutagenic category 1 or 2 Toxic for Reproduction category 1 or 2 (CMR) Persistent, Bioaccumulative & Toxic (PBT) very Persistent & very Bioaccumulative (vPvB) Endocrine Disrupters (ED) Substances found as contaminants in humans and biota raising concern regarding potential long-term harmful effects Substances forming hazardous substances during the collection and treatment of EEE (e.g. during incineration)

Criteria for selection of high priority substances (II) RoHS Criteria for selection of high priority substances (II) Substances classified as dangerous according to Annex I of Directive 67/548, but not fulfilling criteria 1 – 3 and Substances which are already regulated by existing legislation have been documented but have not been further evaluated.

Proposed candidate substances for potential RoHS inclusion

TBBPA intent of proposal of TBBPA by Öko-Institute RoHS TBBPA intent of proposal of TBBPA by Öko-Institute reactive and additive TBBPA current standard of knowledge: Additive TBBPA part of RoHS Reactive TBBPA part of exemption-list of RoHS new discussion of substitution at each review process of RoHS

Lead in solders exemptions in some applications within RoHS positive aspects for lead in solders low solder temperatures → lower stress for PWB higher reliability than lead-free soldering long term experiences knowledge about handling for automotive and industrial applications exemption of lead in solders should be preserved

Environmental management concerns all fields of production of AT&S RoHS Environmental management concerns all fields of production of AT&S AT&S can offer: RoHS compliant PWBs alternative surfaces to HAL: ENIG, HAL-leadfree, OSP… halogenated as well as halogen-reduced PWBs

RoHS Conclusion Environmental protection is one of the most important targets → substitution of substances is one of several instruments Nevertheless following considerations have to be made process engineering alternatives approval of alternatives – long time experiences know how about the handling of new substances economic aspect

RoHS Thank you for your attention

 +43 (0) 676 8955 5763 contact details: Ms. Tina Sumann Environmental engineer AT&S Austria Technologie und Systemtechnik AG  t.sumann@at.ats.net  +43 (0) 676 8955 5763