1. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 About IHS Inc. Founded in 1959 : To provide product catalogues for aerospace engineers Today : Leading provider of critical technical information and insight, decision support tools, and related services 55,000 customers in over 100 countries ISO9001 company with 3,500 employees Strong, Growing Products and Financials IPO Nov 2005 Public, NYSE IHS FY09 revenue: $967M (+ 15%) EBITDA:$279M 50% of revenue outside of US Security Energy Environment Product Lifecycle

2. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Proliferation of Environmental regulations Geographic and medical device compliance lists RoHS v2 Recast UN Stockholm Convention on Persistent Organic Pollutants Norway PoHS China RoHS Japan REACH SVHC Customer RFP Driven (Chemicals and Materials) IBM, Dell, HP, Cisco… Kaiser, Premier, Novation, Amerinet … Thales, Airbus … Health Canada Canadian Chemical Management EU Medical Device Directive US Code of Federal Regulations; Food and Drug Administration US California Proposition 65 …

3. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Here are at least five good reasons to act … Fears surrounding ‘toxic’ substances used in our products Deca-BDE? Phthalates? Cadmium? DEHP? Lead?

4. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Chemical Management – not optional for the supply chain. What are your priorities? IMPORTANCEIMPORTANCE URGENCY Low High Regulations Tracking and interpretation; alerts Standards & Lists Standards for matl. composition declaration and chemical lists Content: Material composition, SVHC, Compliance, Registration, Obsolescence, Alternatives System of Record & Analysis MDS, part and material composition mgmt; List reporting; BOM and risk analysis Notification: Outbound Publish to downstream users Verification & Auditing Physical substance testing, process and content auditing Notification: Inbound Aggregate and manage from upstream suppliers Green Inventory Optimization Duplication across enterprise, safer and less costly alternatives A1 A2 E B C D1 A2 D2 F A1 A2 D2 F E B C D1 A2 D2 F Place enabler in appropriate quadrant for your company B C D1 D2 A2 A1 E

5. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Who is Impacted? Impact is cross-functional and global Global Supply Chain: Impact to continuity of supply; Disruption due to material obsolescence and availability. Global Manufacturing: Supply chain disruptions have already impacted material availability, costs and lead-times for production. Global EHS: Product stewardship regulations and customer demands continue to proliferate globally. Lack of systems and information to respond is inefficient and resource intensive. Global and Local Regulatory: Additional label reviews, change package reviews and approvals, tech file/design dossier updates and submissions, reviews for PMA and 510(k) impact. Assessments needed for global impact to registrations. R&D: Identification of alternate materials and costly, unscheduled product redesign. Global PSM: Collection of material content data from suppliers. Identifying alternate suppliers in compliance with global requirements. Increased supplier management. Global Sales & Marketing: Inability to quickly and accurately respond to customer material content requests and RFP’s such as Kaiser and Premier. Global Ethics & Compliance: Adherence to Code of Conduct., 2

6. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Priority Declarable Substance List (PDSL) Aerospace and Defense Standard Substance List

7. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Make vs. Buy: Calculation Model Economies of Scale with Industry Standardization Make: In House Do it Yourself (Independent) Buy: Outsource (Third Party Specialist) Buy: Economies of Scale Outsource + Industry Standardization Time $ e

8. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Impact to Supply Chain Disruption of Supply Chain: Lessons Learned from RoHS Chemical Restrictions Impacting Margin: RoHS Lead Restrictions = 35% to 300% Increase in Costs for Leaded Parts Chemical Restrictions Impacting Obsolescence: SVHC Publication was a significant factor in the 300% increase of End of Life (EOL) documents for electrical components in 2008 Chemical Registration Deadline SVHC Publication 4

9. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Just how big of a deal is this to medical industry? It’s a very, VERY big deal! Only one of these companies did not participating in today’s webcast. 2009 Fortune 1000: Top Medical Products & Equipment

10. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Redesign Timelines from IHS Medical Webinar Understand/Scope Timeline and Costs 82% Redesign or certifying your primary product/line would take?

11. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Example Scenario from a current IHS Project 33% of OEM’s Parts found to be out of compliance to various regulations 79% of those parts had a supplier recommended replacement. 21% of those parts had no supplier recommended replacement Impact to Product Design Unscheduled Product Redesigns – Long Pole in Tent What is your average timeline for product redesign and certification - 6, 12 or 18 months. 5 What would be the impact if forced to engage in an unscheduled redesign and certification of 21% of our non-compliant parts?

12. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Webinar Live Polling: Solution needs to support Compliance, LC …. TECHNICAL FIT: More important than compliance itself.

13. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Predictive Characteristics IHS Electronics Database: Provides Lifecycle Visibility Ignore lifecycle at a great cost and a great risk Two primary lifecycle methods: 1. Predictive planning algorithms - commodity analytics Fill data gap Validates supplier responses 2. Supplier response Typically less than < 50% response Case Study : Medical OEM undertook compliance program investment without full visibility in part status  Missed 11% of parts obsolete or on LTB after re-design was complete.

14. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Best Practice: You Need Access to Alternatives Alternative parts, materials, and supplier evaluation

15. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 IHS is uniquely positioned to address REACH Information critical to comply, manage risk, optimize performance Which regulations apply to me and what they impact? Which localized versions, requirements, and legal obligations? Which of my business plans and products are exposed to risk? How do I establish my supplier, material, and compliance requirements? How do I aggregate and process high volumes of complex/disparate data? How do I monitor supply chain performance and escalate critical issues? How do I maintain supplier, material and product compliance information? How do I measure and report the current state of compliance and risk? How do I monitor constant regulatory changes and supply chain realignment? How do I declare compliance and material composition to stakeholders? How do I manage changes upstream and downstream within supply chains? How do I verify the receipt or acknowledgement of documents & information? How do I identify, compare and select compliant, lower-risk alternatives? How do I evaluate, compare and drive greater business performance? How do I optimise a product portfolio to improve market position?

16. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 16

17. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Consistent and Clear Format

18. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Assemblies Components Chemicals Fasteners Raw Materials Compliance Data Collection All Parts (AVL): Electronic, Mechanical, Sub-Assemblies… Adhesives Plastics Custom Mechanical Cables

19. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 IHS’ ISO9001 Process Over 50M parts,1B attributes employing over 45 logic checks per part SE Suppliers’ - Part Composition Data ExpertiseClassifyStandardizeAggregateEnrich ISO 9001 Process QA √ Logic Checks CAS Numbers Substance Names Computational Consistency, etc. Comply Plus Material Composition Database ? # of Article & Preparation ? # suppliers Component Management Tool Existing Material and SDS Content PLM Not optional

20. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 AVX Component Full Material Disclosure Example (Before IHS Processing)

21. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 After

22. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Availability FMD in IPC1752 Format Sample - 1.4M Full Material Disclosure (FMD) Documents Manually normalize data from all formats - XLS, XML, Word, HTML, PDF – for bulk loading into EMARS

23. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Optional – IHS Composition Database ComplyPlus can house CAS level composition data for analysis

24. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Store/manage/access (Parametric Data) SVHC/Hazardous materials Full material composition REACH declaration of compliance Store/manage/access (Documents) REACH CoC document Safety Datasheet (SDS) Product Datasheet Full Material Declaration document Other documents Access Traditional licensed and installed application vs. SaaS Connection between systems for key data points Report On part contents against Hazardous Substances Lists of interest (SVHC- 15, SIN List, 67/54/EEC, PDSL, etc.) By collections of items (electronic components, specific manufacturer’s parts, preparations, plastics, paints, etc.) Simulate Where Used: Find all articles and preparations containing a specific substance (such as proposed SVHC) What-if scenarios: If the entire SIN list became SVHC, how would that affect my supply chain? IHS Comply Plus Compliance Data System of Record and Analysis

25. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Part and Manufacturer Information REACH, PDSL and Other Compliance Information. Part Substances, Weight, Pct. Contribution (If Sourced) IHS Comply Plus Product and Material Compliance Analysis

26. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 26 Material Composition Information Can be Stored, Aggregated from all Sub-Components, Compared Against Various Lists and Thresholds, and Summarized at the Part Level Indicators and Reports Update Dynamically Based on Updates Made to Substance Lists Supports REACH, PDSL, SIN 1.0, Custom Lists, Many Others IHS Comply Plus Product and Material Compliance Analysis and Expanded Part Data View Composition Information by % or Weight And Identify % of Composition with CAS

27. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Analysis and Reporting

28. Copyright © 2009 IHS Inc. All Rights Reserved. January 2009 Suppliers BOM load and analysis Parts Attributes Parts Reused Part and Material Compliance and Composition Info. Competency: OEM Competency: Collecting publicly available data not core competency Focus on OEM market and market IP Core work starts once data returned - EOL. redesign, supplier selection Focus on engineering/supply chain decisions Leverage supplier relationship for escalation Aggregating technical/composition data core competency ISO 9001 certified data collection process Data validation with cooperative supplier escalation over 50M components, 1B attributes and 10,000 MFR processed Third party expertise recognized by regulatory agencies – UK BERR Leveraging Core Competencies Enables OEM to drive differentiation and value