EX-1.01 2 d203118dex101.htm EX-1.01 EX-1.01

Exhibit 1.01

Conflict Minerals Report of Woodward, Inc.

For the reporting period from January 1, 2015 to December 31, 2015

This Conflict Minerals Report (the “Report”) of Woodward, Inc. (the “Company,” “Woodward,” “we,” “us” or “our”) has been prepared pursuant to Rule 13p-1 and Form SD (“Form SD”) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”) for the reporting period January 1, 2015 to December 31, 2015 (the “Reporting Period”).

Rule 13p-1, through Form SD, requires the disclosure of certain information if a company manufactures or contracts to manufacture products for which certain conflict minerals (as defined below) are necessary to the functionality or production of such products. As defined in Form SD, and as used herein, “conflict minerals” means: (i)(a) columbite-tantalite (or coltan), (b) cassiterite, (c) gold and (d) wolframite, or their derivatives, which are currently limited to tantalum, tin and tungsten; or (ii) any other mineral or its derivatives determined by the U.S. Secretary of State to be financing conflict in the Democratic Republic of the Congo or an “adjoining country” as defined in Form SD (collectively, the “Covered Countries”).

Woodward’s Manufactured and Contracted-to-Manufacture Products

Woodward, including our consolidated subsidiaries, manufactures, or contracts to manufacture, products for which conflict minerals are necessary to the functionality or production of those products. We provide energy control and optimization solutions for the aerospace and industrial markets through the precise and efficient control of fluid and electrical energy, combustion, and motion. Our key focus areas within the aerospace market are propulsion system control solutions for turbine powered aircraft, actuation systems and motion control solutions. Specific products include fuel pumps, metering units, actuators, air valves, specialty valves, fuel nozzles, and thrust reverser actuation systems for turbine engines and nacelles; as well as flight deck controls (auto throttles, rudder pedal assembles, flight control assemblies), actuators, servocontrols, motors and sensors for aircraft. Within the industrial market, our key focus areas are control solutions for equipment that produce electricity using conventional or renewable energy sources; solutions for the control of power quality, distribution and storage on the electrical grid; and control solutions for power equipment used in the extraction, distribution and conversion of renewable and fossil fuels in marine, mobile, and industrial equipment applications. Specific products include power converters, actuators, valves, pumps, injectors, solenoids, ignition systems, governors, electronics and devices that measure, communicate and protect low and medium voltage electrical distribution systems.

The Company’s Due Diligence Process

The Company’s due diligence measures have been designed to conform to the framework in the Organisation for Economic Co-operation and Development’s (“OECD”), “OECD Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict-Affected and High Risk Areas,” Second Edition, including applicable supplements thereto (the “OECD Guidelines”).

Woodward has implemented or is addressing each of the steps in the OECD 5-step due diligence framework as discussed or referenced below:

 

  1. Establish strong company management systems

 

  A. Company conflict minerals policy

Woodward has developed and adopted a conflict minerals policy, Policy 9-14, Conflict Minerals (the “Conflict Minerals Policy”). The Conflict Minerals Policy affirms that the Company takes our corporate responsibility with respect to responsible sourcing seriously and that it is the Company’s goal only to use in our products conflict minerals that are sourced responsibly. The Conflict Minerals Policy provides that Woodward will take appropriate measures to ensure participants in our global supply chain exercise due diligence and comply with reporting and other compliance requirements with respect to the items Woodward procures from them. The policy is publicly available as a document link at http://www.woodward.com/SocialResponsibility.aspx. The policy is formally reviewed at least annually per corporate policy requirements to determine if any revisions or enhancements are required to maintain compliance with the letter and the intent of the law. No changes were made to Woodward’s Conflict Minerals Policy as the result of its review in 2015.

 

  B. Internal management structure

The Conflict Minerals Policy designates the Corporate Vice President of Global Supply Chain as responsible for ensuring our compliance with conflict minerals reporting requirements. Woodward’s Corporate Director, Global Trade Compliance & Associate General Counsel, serves as an advisor on conflict minerals compliance. Conflict minerals have also been a topic of discussion and review at Board of Directors meetings since September 2012.


The Company has established an internal team to manage conflict minerals engagement with our suppliers. Woodward assigned our Global Supply Chain (“GSC”) with the responsibility for conflict minerals compliance. The GSC’s Business Integration Group has been designated as the focal point for the compliance efforts, as that group has responsibility for GSC business systems, procedures, and compliance with government regulations. Woodward is subject to numerous product material compliance (“PMC”) regulations, including conflict minerals, which require enterprise-wide system and compliance processes and integrated process teams to achieve regulatory compliance requirements and social responsibility goals. The project manager and a product material compliance core team (together the “Core Team”), with other members assigned from the GSC’s Business Integration Group, and with counsel from the Legal & Compliance Department, are the Company’s team of subject matter experts and implementers. The GSC is responsible for reaching out to the Company’s supply base on an ongoing basis to collect information, including EICC / GeSI Conflict Minerals Reporting Templates (“CMRT”), regarding the presence and sourcing of conflict minerals in the products supplied to the Company. The Global Supplier Managers (commodity managers) within the GSC have also provided focused support as required. These actions have aligned existing strategic and organizational structures to address the due diligence and reporting requirements of the SEC Final Rule.

In addition, Woodward’s product material compliance activity, including conflict minerals, is chartered as a formal project to provide an established framework for the continuing evolution of an enterprise-wide set of material compliance processes and standard work. The project is under the sponsorship of an Executive Committee comprised of the Corporate Vice President of Global Supply Chain, Corporate Vice President of Information Technology, and the Corporate Vice President, General Counsel, Corporate Secretary and Chief Compliance Officer. The product material compliance project manager provides status updates and receives executive project guidance on a once per quarter basis. The project also has a Steering Committee, which serves as a liaison between the core team and Woodward’s business groups. The Steering Committee consists of a Vice-President from each Woodward business group and a director from each of Woodward’s Global Support Services organizations. This additional structure enhances the guidance, awareness and execution of compliance and compliance support requirements throughout the enterprise. The Core Team met with the Executive Committee three times and the Steering Committee twice in 2015 to provide project status and obtain strategic guidance. The Core Team, along with our PMC software application solution provider, will transform our existing capabilities into the required PMC capabilities and oversight to achieve our goals.

 

  C. System of controls and transparency over the mineral supply chain

Our existing business systems, WISE and SAP, provide controls over our supply chain. They currently provide:

 

    Identification of the end item products we provide to each of our customers;

 

    Shipping transaction history, to assist in bounding our sales/shipments by calendar year as required by the SEC Final Rule;

 

    A bill of material (“BOM”) identifying all of the components and materials in each of our end item products;

 

    A purchasing history of each of our purchased components and raw materials and the identification of the suppliers used for these purchases;

 

    A receiving inspection function that accepts or rejects purchased components and raw materials based upon whether the purchased items meet or do not meet the specification requirements (including specified material requirements) of the associated drawing or other specification documents. This is accomplished by a combination of direct measurements / inspections of the actual parts, or by reviewing the existence and completeness of formal supplier certifications to selected specifications, such as certifying proper use of specified aluminum or steel specifications.

We are currently working to implement a software application to automate much of the Company’s product materials compliance efforts. In addition, Woodward continues to maintain full membership with the Aerospace Industries Association (“AIA”), and the IPC – the Association Connecting Electronics Industries. We also became a member of the Conflict Free Sourcing Initiative (“CFSI”) in late 2015.

 

  D. Strengthen Company engagement with suppliers

The Company is committed to conducting business in a socially responsible manner and is determined to partner with suppliers who are similarly committed. Woodward has and continues to significantly enhance its engagement with its suppliers regarding conflict minerals requirements. Our purchase order and supplier agreement terms and conditions were modified in mid-2013 to require our suppliers to support our conflict minerals reporting. Woodward continued to revise supplier contract terms and conditions in 2015 with the goal of obtaining full material disclosure (substance, content-by-weight, raw material smelter sources) to increase the traceability of materials from each supplier.


By accepting a Woodward purchase order or a purchase release to a supplier agreement, a seller to Woodward:

“…warrants and certifies that it complies with Section 1502 of the Dodd Frank Act and the Conflict Minerals Regulations and Final Rules issued by the U.S. Securities and Exchange Commission, and any subsequent rules and regulations related thereto (“Conflict Minerals Regulations”), and has implemented compliant processes to ensure its suppliers are in compliance with the Conflict Minerals Regulations.

Where Seller does not have direct and formal reporting requirements under the Conflict Minerals Regulations, and upon request by Buyer, Seller agrees to provide due diligence and Responsible Country of Origin Inquiry (“RCOI”) information under this Agreement to Buyer in support of Buyer’s reporting requirements (the “RCOI Requirements”). Further, Seller shall promptly comply with all requests by Buyer to provide documentation, and other substantiating data and assurances with respect to its compliance with Conflict Minerals Regulations and the RCOI Requirements as Buyer may deem necessary from time to time. In the event: (a) Buyer deems Seller is not in compliance with the Conflict Minerals Regulations or the RCOI Requirements, (b) Buyer is not satisfied with the outcome of any review of Seller documentation and/or data or otherwise, or (c) Seller does not provide the documentation, other data and/or other further assurances to Buyer as requested by Buyer, Buyer shall have the right to terminate this any Order or any portion thereof without penalty or further liability to Seller.”

In 2015, Woodward conducted numerous one-on-one contact sessions with suppliers to address their inquiries and provide guidance where needed. Development of formal supplier training courses continues and determination of appropriate Woodward course delivery methods are under discussion.

 

  E. Establish a company level, or industry-wide, grievance mechanism as an early warning risk-awareness system

Woodward has a comprehensive ethics awareness compliance policy, annual training and contact mechanisms for members’ concerns or ethics grievances. This allows and encourages members to either contact their leader, or anyone in a leadership position, Human Resources, the Company’s Chief Compliance Officer, any other Company Officer, any member of the Company’s Board of Directors, or a hotline / ethics help line (both telephonic and web based) that is managed by an externally contracted agency, which allows for anonymous input if a reporting member so chooses. The details are described in Woodward Policy 01-14 – Woodward Code of Business Conduct and Ethics and in the annual member and leader ethics trainings. Investigations of alleged violations are handled by a Company level Business Conduct Oversight Committee and by the Audit Committee of the Board of Directors.

Direct suppliers to Woodward may contact their Global Supplier Manager at Woodward for resolution if they believe elements of Woodward direction may cause them to be noncompliant with Woodward’s stated social responsibility goals and compliance requirements. Woodward GSC members are also available to help our direct suppliers with compliance issues they may have with their suppliers regarding our flow down contract requirements. Suppliers’ conflict minerals representatives may also contact Woodward’s product material compliance project manager, who will facilitate the appropriate guidance or resolution regarding such issues. In late 2015, the Woodward Core Team began to consider the feasibility of incorporating social responsibility matters such as conflict minerals compliance into our existing ethics and compliance infrastructure.

 

  2. Identify and assess risks in the supply chain

Woodward is a downstream manufacturer. As such, Woodward does not control the origin or composition of many of the materials provided by our suppliers. Consequently, we ask our suppliers to inquire, identify, and conduct data collection and due diligence activities, which in turn are fundamental elements of our due diligence activities. Woodward conducts analyses of the data collected from our first-tier suppliers for accuracy and completeness in order to identify and assess of risks in the Woodward supply chain. This includes:

 

    The initial smelter checklist analysis contained in the CMRT

 

    The comparison of supplier smelter identities to the current Conflict-Free Sourcing Initiative (“CFSI”) smelter database, which is available via Woodward’s membership in the CFSI

 

    The indirect analysis support Woodward has acquired as a result of submitting interim roll-up CMRTs to our customers and receiving analysis results from the various software applications they use

In 2015, Woodward started (on a manual basis) to use both the publicly available CFSI smelter and refiner list, and the CFSI compliance and country of origin databases available through our CFSI membership. Woodward intends to compare RCOI results to information collected via independent smelter identification and conflict free smelter validation programs such as the Department of Commerce smelter identification list, the EICC / GeSI CFSI program, sources certified to the Fairtrade Standard for Gold and Precious Metals and source assessment information from the London Bullion Market Association.


For suppliers’ smelter inputs that are still undetermined (i.e., the source has not been confirmed as a smelter, or its conflict-free sourcing status has not been identified through the above validation programs), Woodward, in 2015, obtained additional validation data from select customers who have software applications in place and who receive our interim roll-up CMRTs. We are also acquiring independent input on our suppliers’ non-CFSI-identified smelters from a software applications solution provider that has compiled an extensive SOR database.

There is significant overlap between our RCOI efforts and our due diligence measures performed. Our RCOI process is described in our Form SD.

 

  3. Design and implement a strategy to respond to identified risks

 

  A. Report findings of the supply chain risk assessment, including conflict minerals compliance, to the designated senior management of the Company

In addition to the product material compliance project core team quarterly reporting to its Executive and Steering Committees as identified in 1B above, in 2015 Woodward conducted numerous one-on-one supplier contacts and performing several assessments on supplier-provided SOR data as described in the Woodward Calendar Year 2015 Due Diligence Results section of this Conflict Minerals Report.

 

    Woodward conducts monthly supplier reviews by commodity grouping with the Corporate Vice President of Global Supply Chain and the commodity directors.

 

    The periodic reviews conducted by each business group president include a review of supply chain issues for that business group.

 

    A strategic planning review and a mid-year review are presented by the corporate executive staff to the Company’s Chief Executive Officer and the Company’s Chief Financial Officer to provide, at the highest level of management, strategic oversight of our supply chain strategies and performance.

 

  B. Devise and adopt a risk management plan

Woodward has several formal procedures and tools relative to risk management that form a solid foundation for our planned improvement actions to incorporate specific conflict minerals aspects of risk management. These existing procedures include but are not limited to our supplier approval process, our purchasing procedures, our purchase order and supplier agreement terms and conditions (described in Due Diligence section 1D above), our supplier registration portal and our Parts Transition Process, and possible software solutions.

 

  C. Implement the risk mitigation plan

Woodward is continuing to develop a risk management and mitigation plan providing for actions to be taken should Woodward determine if any conflict minerals are sourced from conflict-affected areas of Covered Countries.

 

  D. Undertake additional fact finding and risk assessments for risks requiring mitigation, or after a change in circumstances

In 2015, Woodward engaged in additional fact finding and risk assessments to identify risks requiring mitigation or after a change in circumstances. These activities are described above. The enhanced inquiry and assessment activities discussed for RCOI in our Form SD also provide additional and refined findings for risk identification and assessment. These activities are discussed in the RCOI Improvement Actions Continuing or Planned section, item 2.

 

  4. Carry out independent third-party audits of supply chain due diligence at identified points in the supply chain

Woodward is significantly downstream in the supply chain from smelters and refiners. In order to obtain smelter and refiner information, Woodward seeks information from our upstream suppliers and from third party data aggregating services. Woodward joined the EICC/ GeSI CFSI in late 2015 to leverage the CFSI Conflict Free Smelter audit program and the resulting audit data from that program. We will also leverage any equivalent audit data that may be obtained through Woodward’s memberships in the AIA and IPC.

 

  5. Report annually on supply chain due diligence

The Form SD is posted as one of our many required SEC filings as a document link at http://www.woodward.com/secfilings.aspx. The Conflict Minerals Report, when required, is also posted as a document link at http://www.woodward.com/SocialResponsibility.aspx. These postings are completed within one business week of the filing of these documents with the SEC. Also in compliance with the SEC Final Rule, Woodward’s Conflict Minerals Policy, Policy 09-14, is posted as a document link at http://www.woodward.com/SocialResponsibility.aspx. Woodward has published a Sustainability Report, which summarizes our Conflict Minerals Policy and provides the context of conflict minerals compliance and objectives within our overall sustainability goals, initiatives and practices. The Sustainability Report is available as a document link at http://www.woodward.com/SocialResponsibility.aspx.


Woodward Calendar Year 2015 Due Diligence Results

Woodward Conflict Minerals Data Requests and Supplier Responses (the Due Diligence in Acquiring Supplier Data)

Woodward sent its initial 2015 data request to 2623 suppliers on June 10, 2015, requesting CMRTs and the contact data for both their Conflict Minerals point of contact (“POC”) and their overall materials compliance POC. These represented Woodward’s direct suppliers with spend between November 1, 2014 and May 31, 2015. We also requested that suppliers identify if they had a parent company, their parent company contact data if applicable, and whether their conflict minerals reporting was from a corporate or business group level. Follow-up inquiries were sent to current non-respondents in August, 2015, November 2015 and March 2016. Three other sets of inquiries were sent during March 2016 to confirm and complete subsidiary relationships for previous CMRT receipts indicating such relationships, and to target suppliers that returned unrecognized e-mail address flag responses to our initial inquiry.

Woodward’s supplier CMRT response status as of April 1, 2016 was:

Total # of Supplier records – 2623

Total # of emails sent – 6242 (includes initial inquiry and all follow-ups to non-respondents)

Total # of supplier responses – 1571 (59.9%)

Total # of CMRTs received – 1230 (46.7%)

Total # of valid CMRTs received – 1090 (“valid” indicates Excel file CMRT with no checker-tab-indicated errors) (41.6%)

Total # of CMRTs received at version 4.0 or higher – 438 (16.7%)

Woodward generated a supplier report in November 2015 to collect data on any new suppliers with spend since the May 31st cutoff of the prior report, thereby completing our supplier inquiry database for calendar year 2015. Forty additional suppliers identified by that report were sent their initial CMRT requests in early April, 2016.

We also sent requests in early April, 2016 to the 900 suppliers who provided us pre-version 4.0 CMRTs, requesting them to update their information to the version 4.01b template.

Supplier Response Assessment (Smelter Determination Due Diligence)

Using the publicly available CFSI smelter and refiner reference list contained in the CMRT template, Woodward manually generated an integrated roll-up CMRT from a subset of the received supplier company level CMRTs. This resulted in the 267 smelters or refiners (“SOR”) with CFSI identification numbers listed in the table below who provide through our supply chain conflict minerals used in Woodward’s products:

 

Metal (*)

  

Smelter Name (*)

  

Smelter Country (*)

  

Smelter
Identification

Tungsten

   Hunan Chenzhou Mining Co., Ltd.    CHINA    CID000766

Tin

   Elmet S.L.U. (Metallo Group)    SPAIN    CID002774

Tin

   Metallo-Chimique N.V.    BELGIUM    CID002773

Tungsten

   Hydrometallurg, JSC    RUSSIAN FEDERATION    CID002649

Tantalum

   KEMET Blue Powder    UNITED STATES    CID002568

Tantalum

   Global Advanced Metals Aizu    JAPAN    CID002558

Tantalum

   Global Advanced Metals Boyertown    UNITED STATES    CID002557

Tantalum

   Plansee SE Reutte    AUSTRIA    CID002556

Tantalum

   H.C. Starck Smelting GmbH & Co.KG    GERMANY    CID002550

Tantalum

   H.C. Starck Ltd.    JAPAN    CID002549

Tantalum

   H.C. Starck Inc.    UNITED STATES    CID002548

Tantalum

   H.C. Starck Hermsdorf GmbH    GERMANY    CID002547

Tantalum

   H.C. Starck GmbH Laufenburg    GERMANY    CID002546

Tantalum

   H.C. Starck GmbH Goslar    GERMANY    CID002545

Tantalum

   H.C. Starck Co., Ltd.    THAILAND    CID002544

Tungsten

   Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC    VIET NAM    CID002543

Tungsten

   H.C. Starck Smelting GmbH & Co. KG    GERMANY    CID002542

Tungsten

   H.C. Starck GmbH    GERMANY    CID002541

Tantalum

   Plansee SE Liezen    AUSTRIA    CID002540

Tantalum

   KEMET Blue Metals    MEXICO    CID002539

Tungsten

   Pobedit, JSC    RUSSIAN FEDERATION    CID002532


Tungsten

   Ganxian Shirui New Material Co., Ltd.    CHINA    CID002531

Tin

   PT Inti Stania Prima    INDONESIA    CID002530

Tin

   O.M. Manufacturing Philippines, Inc.    PHILIPPINES    CID002517

Tungsten

   Chenzhou Diamond Tungsten Products Co., Ltd.    CHINA    CID002513

Tantalum

   Jiangxi Dinghai Tantalum & Niobium Co., Ltd.    CHINA    CID002512

Tantalum

   FIR Metals & Resource Ltd.    CHINA    CID002505

Tin

   PT ATD Makmur Mandiri Jaya    INDONESIA    CID002503

Tin

   Melt Metais e Ligas S/A    BRAZIL    CID002500

Tungsten

   Ganzhou Seadragon W & Mo Co., Ltd.    CHINA    CID002494

Tungsten

   Jiangxi Richsea New Materials Co., Ltd.    CHINA    CID002493

Tantalum

   Hengyang King Xing Lifeng New Materials Co., Ltd.    CHINA    CID002492

Tin

   Magnu’s Minerais Metais e Ligas Ltda.    BRAZIL    CID002468

Tungsten

   Jiangxi Gan Bei Tungsten Co., Ltd.    CHINA    CID002321

Tungsten

   Xiamen Tungsten (H.C.) Co., Ltd.    CHINA    CID002320

Tungsten

   Malipo Haiyu Tungsten Co., Ltd.    CHINA    CID002319

Tungsten

   Jiangxi Tonggu Non-ferrous Metallurgical & Chemical Co., Ltd.    CHINA    CID002318

Tungsten

   Jiangxi Xinsheng Tungsten Industry Co., Ltd.    CHINA    CID002317

Tungsten

   Jiangxi Yaosheng Tungsten Co., Ltd.    CHINA    CID002316

Tungsten

   Ganzhou Jiangwu Ferrotungsten Co., Ltd.    CHINA    CID002315

Gold

   Umicore Precious Metals Thailand    THAILAND    CID002314

Tungsten

   Jiangxi Minmetals Gao’an Non-ferrous Metals Co., Ltd.    CHINA    CID002313

Gold

   Guangdong Jinding Gold Limited    CHINA    CID002312

Tantalum

   Yichun Jin Yang Rare Metal Co., Ltd.    CHINA    CID002307

Gold

   Zijin Mining Group Co., Ltd. Gold Refinery    CHINA    CID002243

Tungsten

   Zhuzhou Cemented Carbide Group Co Ltd    CHINA    CID002236

Tantalum

   Zhuzhou Cemented Carbide    CHINA    CID002232

Gold

   Zhongyuan Gold Smelter of Zhongjin Gold Corporation    CHINA    CID002224

Tin

   Yunnan Tin Group (Holding) Company Limited    CHINA    CID002180

Tin

   Yunnan Chengfeng Non-ferrous Metals Co., Ltd.    CHINA    CID002158

Gold

   Yokohama Metal Co., Ltd.    JAPAN    CID002129

Gold

   Yamamoto Precious Metal Co., Ltd.    JAPAN    CID002100

Tungsten

   Xinhai Rendan Shaoguan Tungsten Co., Ltd.    CHINA    CID002095

Tungsten

   Xiamen Tungsten Co., Ltd.    CHINA    CID002082

Tungsten

   Wolfram Company CJSC    RUSSIAN FEDERATION    CID002047

Tungsten

   Wolfram Bergbau und Hütten AG    AUSTRIA    CID002044

Tin

   White Solder Metalurgia e Mineração Ltda.    BRAZIL    CID002036

Gold

   Western Australian Mint trading as The Perth Mint    AUSTRALIA    CID002030

Gold

   Western Australian Mint trading as The Perth Mint    AUSTRALIA    CID002030

Tungsten

   Vietnam Youngsun Tungsten Industry Co., Ltd.    VIET NAM    CID002011

Gold

   Valcambi SA    SWITZERLAND    CID002003

Gold

   United Precious Metal Refining, Inc.    UNITED STATES    CID001993

Gold

   Umicore SA Business Unit Precious Metals Refining    BELGIUM    CID001980

Gold

   Umicore Brasil Ltda.    BRAZIL    CID001977

Tantalum

   Ulba Metallurgical Plant JSC    KAZAKHSTAN    CID001969

Gold

   Torecom    KOREA, REPUBLIC OF    CID001955

Gold

   Tongling Nonferrous Metals Group Co., Ltd.    CHINA    CID001947

Gold

   Tokuriki Honten Co., Ltd.    JAPAN    CID001938

Gold

   The Refinery of Shandong Gold Mining Co. Ltd    CHINA    CID001916

Gold

   The Great Wall Gold and Silver Refinery of China    CHINA    CID001909

Tin

   Thaisarco    THAILAND    CID001898

Tantalum

   Telex Metals    UNITED STATES    CID001891

Tungsten

   Tejing (Vietnam) Tungsten Co., Ltd.    VIET NAM    CID001889

Gold

   Tanaka Kikinzoku Kogyo K.K.    JAPAN    CID001875

Tantalum

   Taki Chemicals    JAPAN    CID001869

Gold

   Sumitomo Metal Mining Co., Ltd.    JAPAN    CID001798

Tantalum

   Solikamsk Magnesium Works OAO    RUSSIAN FEDERATION    CID001769

Gold

   Solar Applied Materials Technology Corp.    TAIWAN    CID001761


Tin

   Soft Metais Ltda.    BRAZIL    CID001758

Gold

   SOE Shyolkovsky Factory of Secondary Precious Metals    RUSSIAN FEDERATION    CID001756

Gold

   So Accurate Group, Inc.    UNITED STATES    CID001754

Gold

   Sichuan Tianze Precious Metals Co., Ltd.    CHINA    CID001736

Tantalum

   Shanghai Jiangxi Metals Co. Ltd    CHINA    CID001634

Gold

   Shandong Zhaojin Gold & Silver Refinery Co., Ltd.    CHINA    CID001622

Gold

   Shandong Tiancheng Biological Gold Industrial Co., Ltd.    CHINA    CID001619

Gold

   SEMPSA Joyería Platería SA    SPAIN    CID001585

Gold

   Schone Edelmetaal B.V.    NETHERLANDS    CID001573

Gold

   SAMWON METALS corp.    KOREA, REPUBLIC OF    CID001562

Gold

   Samduck Precious Metals    KOREA, REPUBLIC OF    CID001555

Gold

   Sabin Metal Corp.    UNITED STATES    CID001546

Tin

   Rui Da Hung    TAIWAN    CID001539

Gold

   Royal Canadian Mint    CANADA    CID001534

Tantalum

   RFH Tantalum Smeltry Co., Ltd.    CHINA    CID001522

Gold

   Rand Refinery (Pty) Ltd.    SOUTH AFRICA    CID001512

Tantalum

   QuantumClean    UNITED STATES    CID001508

Gold

   PX Précinox SA    SWITZERLAND    CID001498

Tin

   PT Yinchendo Mining Industry    INDONESIA    CID001494

Tin

   PT Tinindo Inter Nusa    INDONESIA    CID001490

Tin

   PT Pelat Timah Nusantara Tbk    INDONESIA    CID001486

Tin

   PT Timah (Persero) Tbk Mentok    INDONESIA    CID001482

Tin

   PT Tambang Timah    INDONESIA    CID001477

Tin

   PT Supra Sukses Trinusa    INDONESIA    CID001476

Tin

   PT Sumber Jaya Indah    INDONESIA    CID001471

Tin

   PT Stanindo Inti Perkasa    INDONESIA    CID001468

Tin

   PT Seirama Tin Investment    INDONESIA    CID001466

Tin

   PT Sariwiguna Binasentosa    INDONESIA    CID001463

Tin

   PT Refined Bangka Tin    INDONESIA    CID001460

Tin

   PT Prima Timah Utama    INDONESIA    CID001458

Tin

   PT Panca Mega Persada    INDONESIA    CID001457

Tin

   PT Mitra Stania Prima    INDONESIA    CID001453

Tin

   PT Koba Tin    INDONESIA    CID001449

Tin

   PT Karimun Mining    INDONESIA    CID001448

Tin

   PT HP Metals Indonesia    INDONESIA    CID001445

Tin

   PT Fang Di MulTindo    INDONESIA    CID001442

Tin

   PT Eunindo Usaha Mandiri    INDONESIA    CID001438

Tin

   PT DS Jaya Abadi    INDONESIA    CID001434

Tin

   PT Bukit Timah    INDONESIA    CID001428

Tin

   PT BilliTin Makmur Lestari    INDONESIA    CID001424

Tin

   PT Belitung Industri Sejahtera    INDONESIA    CID001421

Tin

   PT Bangka Tin Industry    INDONESIA    CID001419

Tin

   PT Bangka Timah Utama Sejahtera    INDONESIA    CID001416

Tin

   PT Bangka Putra Karya    INDONESIA    CID001412

Tin

   PT Bangka Kudai Tin    INDONESIA    CID001409

Tin

   PT Babel Surya Alam Lestari    INDONESIA    CID001406

Tin

   PT Babel Inti Perkasa    INDONESIA    CID001402

Tin

   PT Artha Cipta Langgeng    INDONESIA    CID001399

Gold

   PT Aneka Tambang (Persero) Tbk    INDONESIA    CID001397

Tin

   PT Alam Lestari Kencana    INDONESIA    CID001393

Gold

   Prioksky Plant of Non-Ferrous Metals    RUSSIAN FEDERATION    CID001386

Tantalum

   Plansee    AUSTRIA    CID001368

Gold

   Penglai Penggang Gold Industry Co., Ltd.    CHINA    CID001362

Gold

   PAMP SA    SWITZERLAND    CID001352

Tin

   Operaciones Metalurgical S.A.    BOLIVIA    CID001337

Gold

   OJSC Kolyma Refinery    RUSSIAN FEDERATION    CID001328

Gold

  

OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant”

(OJSC Krastsvetmet)

   RUSSIAN FEDERATION    CID001326


Gold

   Ohura Precious Metal Industry Co., Ltd.    JAPAN    CID001325

Gold

   Ohio Precious Metals, LLC    UNITED STATES    CID001322

Tin

   O.M. Manufacturing (Thailand) Co., Ltd.    THAILAND    CID001314

Tin

   Novosibirsk Integrated Tin Works    RUSSIAN FEDERATION    CID001305

Tantalum

   Ningxia Orient Tantalum Industry Co., Ltd.    CHINA    CID001277

Gold

   Nihon Material Co., Ltd.    JAPAN    CID001259

Gold

   Navoi Mining and Metallurgical Combinat    UZBEKISTAN    CID001236

Tin

   Nankang Nanshan Tin Manufactory Co., Ltd.    CHINA    CID001231

Gold

   Nadir Metal Rafineri San. Ve Tic. A.Ş.    TURKEY    CID001220

Gold

   Moscow Special Alloys Processing Plant    RUSSIAN FEDERATION    CID001204

Tantalum

   Molycorp Silmet A.S.    ESTONIA    CID001200

Gold

   Mitsui Mining and Smelting Co., Ltd.    JAPAN    CID001193

Tantalum

   Mitsui Mining & Smelting    JAPAN    CID001192

Tin

   Mitsubishi Materials Corporation    JAPAN    CID001191

Gold

   Mitsubishi Materials Corporation    JAPAN    CID001188

Tin

   Minsur    PERU    CID001182

Tantalum

   Mineração Taboca S.A.    BRAZIL    CID001175

Tin

   Mineração Taboca S.A.    BRAZIL    CID001173

Tantalum

   Metallurgical Products India Pvt., Ltd.    INDIA    CID001163

Gold

   Metalor USA Refining Corporation    UNITED STATES    CID001157

Gold

   Metalor Technologies    SWITZERLAND    CID001153

Gold

   Metalor Technologies (Singapore) Pte., Ltd.    SINGAPORE    CID001152

Gold

   Metalor Technologies (Hong Kong) Ltd.    CHINA    CID001149

Tin

   Metallo Chimique    BELGIUM    CID001143

Gold

   Matsuda Sangyo Co., Ltd.    JAPAN    CID001119

Gold

   Materion    UNITED STATES    CID001113

Tin

   Malaysia Smelting Corporation (MSC)    MALAYSIA    CID001105

Gold

   Luoyang Zijin Yinhui Gold Refinery Co., Ltd.    CHINA    CID001093

Gold

   LS-NIKKO Copper Inc.    KOREA, REPUBLIC OF    CID001078

Tantalum

   LSM Brasil S.A.    BRAZIL    CID001076

Tin

   Liuzhou China Tin    CHINA    CID001070

Tin

   Linwu Xianggui Ore Smelting Co., Ltd.    CHINA    CID001063

Gold

   Lingbao Jinyuan Tonghui Refinery Co., Ltd.    CHINA    CID001058

Gold

   Lingbao Gold Company Limited    CHINA    CID001056

Gold

   L’azurde Company For Jewelry    SAUDI ARABIA    CID001032

Gold

   Kyrgyzaltyn JSC    KYRGYZSTAN    CID001029

Gold

   Korea Metal Co., Ltd.    KOREA, REPUBLIC OF    CID000988

Gold

   Kojima Chemicals Co., Ltd.    JAPAN    CID000981

Tantalum

   King-Tan Tantalum Industry Ltd.    CHINA    CID000973

Gold

   Kennecott Utah Copper LLC    UNITED STATES    CID000969

Tungsten

   Kennametal Fallon    UNITED STATES    CID000966

Gold

   Kazzinc    KAZAKHSTAN    CID000957

Tin

   Gejiu Kai Meng Industry and Trade LLC    CHINA    CID000942

Gold

   JX Nippon Mining & Metals Co., Ltd.    JAPAN    CID000937

Gold

   JSC Uralelectromed    RUSSIAN FEDERATION    CID000929

Gold

   JSC Ekaterinburg Non-Ferrous Metal Processing Plant    RUSSIAN FEDERATION    CID000927

Gold

   Johnson Matthey Limited    CANADA    CID000924

Gold

   Asahi Refining USA Inc.    UNITED STATES    CID000920

Tantalum

   Jiujiang Tanbre Co., Ltd.    CHINA    CID000917

Tantalum

   JiuJiang JinXin Nonferrous Metals Co., Ltd.    CHINA    CID000914

Tungsten

   Ganzhou Huaxing Tungsten Products Co., Ltd.    CHINA    CID000875

Tungsten

   Ganzhou Non-ferrous Metals Smelting Co., Ltd.    CHINA    CID000868

Tin

   Jiangxi Nanshan    CHINA    CID000864

Gold

   Jiangxi Copper Company Limited    CHINA    CID000855

Tungsten

   Japan New Metals Co., Ltd.    JAPAN    CID000825


Gold

   Japan Mint    JAPAN    CID000823

Gold

   Istanbul Gold Refinery    TURKEY    CID000814

Gold

   Ishifuku Metal Industry Co., Ltd.    JAPAN    CID000807

Gold

   Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited    CHINA    CID000801

Gold

   Hwasung CJ Co., Ltd.    KOREA, REPUBLIC OF    CID000778

Tungsten

   Hunan Chunchang Nonferrous Metals Co., Ltd.    CHINA    CID000769

Gold

   Hunan Chenzhou Mining Co., Ltd.    CHINA    CID000767

Tungsten

   Hunan Chenzhou Mining Co., Ltd.    CHINA    CID000766

Tin

   Huichang Jinshunda Tin Co., Ltd.    CHINA    CID000760

Tantalum

   Hi-Temp Specialty Metals, Inc.    UNITED STATES    CID000731

Gold

   Heraeus Precious Metals GmbH & Co. KG    GERMANY    CID000711

Tin

   Heraeus Precious Metals GmbH & Co. KG    GERMANY    CID000711

Gold

   Heraeus Ltd. Hong Kong    HONG KONG    CID000707

Gold

   Heimerle + Meule GmbH    GERMANY    CID000694

Tungsten

   HC Starck GmbH    GERMANY    CID000683

Gold

   Hangzhou Fuchunjiang Smelting Co., Ltd.    CHINA    CID000671

Tantalum

   H.C. Starck Group    GERMANY    CID000654

Tantalum

   Guangdong Zhiyuan New Material Co., Ltd.    CHINA    CID000616

Tungsten

   Global Tungsten & Powders Corp    UNITED STATES    CID000568

Tantalum

   Global Advanced Metals    UNITED STATES    CID000564

Tin

   Gejiu Zi-Li    CHINA    CID000555

Tin

   Gejiu Non-Ferrous Metal Processing Co., Ltd.    CHINA    CID000538

Gold

   Gansu Seemine Material Hi-Tech Co., Ltd.    CHINA    CID000522

Tungsten

   Fujian Jinxin Tungsten Co., Ltd.    CHINA    CID000499

Gold

   OJSC Novosibirsk Refinery    RUSSIAN FEDERATION    CID000493

Tin

   Fenix Metals    POLAND    CID000468

Tin

   Feinhütte Halsbrücke GmbH    GERMANY    CID000466

Tantalum

   F&X Electro-Materials Ltd.    CHINA    CID000460

Tantalum

   Exotech Inc.    UNITED STATES    CID000456

Tin

   Estanho de Rondônia S.A.    BRAZIL    CID000448

Tin

   EM Vinto    BOLIVIA    CID000438

Tantalum

   Duoluoshan    CHINA    CID000410

Tin

   Dowa    JAPAN    CID000402

Gold

   Dowa    JAPAN    CID000401

Gold

   DODUCO GmbH    GERMANY    CID000362

Gold

   DO SUNG CORPORATION    KOREA, REPUBLIC OF    CID000359

Tungsten

   Dayu Weiliang Tungsten Co., Ltd.    CHINA    CID000345

Gold

   Daye Non-Ferrous Metals Mining Ltd.    CHINA    CID000343

Gold

   Daejin Indus Co., Ltd.    KOREA, REPUBLIC OF    CID000328

Tin

   CV United Smelting    INDONESIA    CID000315

Tin

   CV Serumpun Sebalai    INDONESIA    CID000313

Tin

   CV Nurjanah    INDONESIA    CID000309

Tin

   CV Makmur Jaya    INDONESIA    CID000308

Tin

   CV JusTindo    INDONESIA    CID000307

Tin

   PT Justindo    INDONESIA    CID000307

Tin

   CV Gita Pesona    INDONESIA    CID000306

Tin

   Cooperativa Metalurgica de Rondônia Ltda.    BRAZIL    CID000295

Tin

   Alpha    UNITED STATES    CID000292

Tantalum

   Conghua Tantalum and Niobium Smeltry    CHINA    CID000291

Tin

   CNMC (Guangxi) PGMA Co., Ltd.    CHINA    CID000278

Gold

   Chugai Mining    JAPAN    CID000264

Tungsten

   Chongyi Zhangyuan Tungsten Co., Ltd.    CHINA    CID000258

Tin

   Jiangxi Ketai Advanced Material Co., Ltd.    CHINA    CID000244

Gold

   China National Gold Group Corporation    CHINA    CID000242

Gold

   Chimet S.p.A.    ITALY    CID000233

Tungsten

   Guangdong Xianglu Tungsten Co., Ltd.    CHINA    CID000218

Tantalum

   Changsha South Tantalum Niobium Co., Ltd.    CHINA    CID000211


Gold

   Yunnan Copper Industry Co., Ltd.    CHINA    CID000197

Gold

   Cendres + Métaux SA    SWITZERLAND    CID000189

Gold

   CCR Refinery – Glencore Canada Corporation    CANADA    CID000185

Gold

   Caridad    MEXICO    CID000180

Gold

   C. Hafner GmbH + Co. KG    GERMANY    CID000176

Gold

   Boliden AB    SWEDEN    CID000157

Gold

   Bauer Walser AG    GERMANY    CID000141

Gold

   Bangko Sentral ng Pilipinas (Central Bank of the Philippines)    PHILIPPINES    CID000128

Gold

   Aurubis AG    GERMANY    CID000113

Tungsten

   Kennametal Huntsville    UNITED STATES    CID000105

Gold

   Atasay Kuyumculuk Sanayi Ve Ticaret A.S.    TURKEY    CID000103

Gold

   Asaka Riken Co., Ltd.    JAPAN    CID000090

Gold

   Asahi Pretec Corporation    JAPAN    CID000082

Gold

   Argor-Heraeus SA    SWITZERLAND    CID000077

Gold

   AngloGold Ashanti Córrego do Sítio Mineração    BRAZIL    CID000058

Gold

   Almalyk Mining and Metallurgical Complex (AMMC)    UZBEKISTAN    CID000041

Gold

   Allgemeine Gold-und Silberscheideanstalt A.G.    GERMANY    CID000035

Gold

   Aida Chemical Industries Co., Ltd.    JAPAN    CID000019

Gold

   Advanced Chemical Company    UNITED STATES    CID000015

Tungsten

   A.L.M.T. TUNGSTEN Corp.    JAPAN    CID000004

We then used CFSI’s SOR compliance status and mine country of origin data available to Woodward as a CFSI member with the following summary results: as of May 10, 2016, of the 267 identified SORs, 239 were eligible for CFSI audit. Another 193 of the SORs were determined by CFSI to be “Compliant” (DRC Conflict Free by audit or by a specific membership), and 12 other SORs are in communication with CFSI for audits. Mine country of origin data is available for only 121 of the 193 Compliant SORs and for 4 other SORs designated as “Active”. Twelve other Compliant SORs were determined to deal only in scrap or recycled material. Sixty Compliant SORs were audited by either the Responsible Jewelry Network or the London Bullion Market Association; mine country of origin data was not provided to CFSI.

In addition, the supplier CMRTs incorporated into the Woodward roll-up listed 1046 entities as smelters but which do not have a current CFSI ID number. This list is being reviewed and submitted to a conflict minerals solution provider with an extensive SOR database for a validity determination and conflict-free status indication, if available.

Smelter or Refiner Mine Country of Origin Results

Collectively, the 121 Compliant and 4 Active SORs source their minerals from the following mine countries of origin:

 

Argentina

   Madagascar

Australia

   Malaysia

Austria

   Mongolia

Belgium

   Myanmar

Bolivia

   Namibia

Brazil

   Netherlands

Cambodia

   Nigeria

Canada

   Peru

Chile

   Portugal

China

   Russia

Colombia

   Sierra Leone

Côte D’Ivoire

   Singapore

Czech Republic

   Slovakia

Djibouti

   South Korea

Ecuador

   Spain

Egypt

   Suriname

Estonia

   Switzerland


Ethiopia

   Taiwan

France

   Thailand

Germany

   United Kingdom

Guyana

   United States of America

Hungary

   Vietnam

India

   Zimbabwe

Indonesia

  

Ireland

  

Israel

  

Japan

  

Kazakhstan

  

Laos

  

Luxembourg

  

Concluding Statement

Woodward continues to make significant year-over-year progress relative to supplier conflict minerals response rates and with data analysis, SOR identification and mine COI through improvements in our due diligence activity and our association memberships. However, since Woodward has not yet achieved a 100% supplier response rate, as virtually all of our supplier responses are at a company level and not yet focused on Woodward specific parts, and because complete SOR conflict status and mine COI data is not yet available from centralized sources specializing in the collection and assessment of such data, Woodward does not have sufficiently complete or discriminating data at this time to confirm the conflict-free or may-not-be-conflict-free status of any of its product families or individual products. Woodward is continuing efforts and progress in 2016 on improvement actions described above, as well as conducting implementation activity on its product material compliance software application.