EX-1.02 2 dp46826_ex102.htm EXHIBIT 1.02
Exhibit 1.02
 
 
ROPER INDUSTRIES, INC.
Conflict Minerals Report
For The Year Ended December 31, 2013
 
This report for the year ended December 31, 2013 is presented to comply with Rule 13p-1 under the Securities Exchange Act of 1934 (“SEC Rule”).
 
Our Business
 
Roper Industries, Inc. (“Roper” or “we”, “our” or “us”) is a diversified growth company that designs, manufactures and distributes numerous products in four business segments: Medical and Scientific Imaging, RF Technology, Industrial Technology and Energy Systems and Controls. We market these products and services to a broad range of markets including radio frequency (“RF”) applications, medical, water, energy, research, education, software-as-a-service (“SaaS”)-based information networks, security and other niche markets. A description of our products by segment is as follows:
 
Medical and Scientific Imaging. Our Medical and Scientific Imaging segment principally offers products and software in medical applications, and high performance digital imaging products. We manufacture and sell patient positioning devices and related software for use in radiation oncology, 3-D measurement technology in computer-assisted surgery and supply diagnostic and therapeutic disposable products used in ultrasound imaging for minimally invasive medical procedures. We design and manufacture a non-invasive instrument for portable ultrasound bladder volume measurement and a video laryngoscope. We manufacture and sell extremely sensitive, high-performance electron filters, charged couple device and complementary metal oxide semiconductor cameras, detectors and related software for a variety of scientific and industrial uses, which require high resolution and/or high speed digital video, including electron microscopy and spectroscopy applications.
 
RF Technology. Our RF Technology segment provides radio frequency identification communication technology and software solutions that are used primarily in toll and traffic systems and processing, security and access control, campus card systems, software-as-a-service in the freight matching and food industries and metering and remote monitoring applications. We manufacture and sell meter reading, data logging and pressure control products for use in water, gas and electricity applications. We also provide network monitoring, leakage reduction and pressure control services in water and gas distribution networks.
 
Industrial Technology. Our Industrial Technology segment produces fluid handling pumps, equipment and consumables for materials analysis, leak testing equipment, flow measurement and metering equipment and water meter and automatic meter reading products and systems.
 
Energy Systems and Controls. Our Energy Systems and Controls segment principally produces control systems, fluid properties testing equipment, industrial valves and controls, vibration sensors and controls and non-destructive inspection and measurement products and solutions.
 
 
Page 1 of 4

 
 
Due Diligence
 
Our due diligence measures have been designed to conform, in all material respects relevant to the disclosure requirements under the SEC Rule, with the internationally recognized Organisation for Economic Co-operation and Development’s OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. (“OECD Guidance”).
 
OECD Guidance Step 1: Establish strong company management systems
 
Our operations are reported in four business segments, each composed of multiple subsidiaries, therefore, a management position was established to be the single point of contact to oversee and develop the conflict minerals program. This position works with a team of senior staff and has senior management support and visibility by reporting directly to the Executive Vice President and Chief Financial Officer.
 
Each subsidiary impacted designated specific personnel to coordinate with the conflict mineral management position to oversee the implementation and execution of the program and communicate directly with its affected suppliers.
 
We adopted the following conflict minerals policy which is available on our website at http://www.roperind.com/conflict-minerals.pdf and was communicated internally, as well as provided to our direct suppliers affected by the policy.
 
Background - The U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act and the SEC Rule require publicly-traded companies to disclose whether the products they manufacture contain certain “conflict minerals” – cassiterite (tin), wolframite (tungsten), columbite-tantalite (tantalum), gold, or their derivatives originating in the Democratic Republic of the Congo (“DRC”) or an adjoining country – have been found to support the civil conflict and human rights violations in the region. If so, a report must be filed specifying those products and the due diligence measures taken to determine their source.
 
Roper’s Conflict Minerals Policy - We are committed to complying with this legislation and with the SEC Rule. Cooperation from our supply chains is necessary to provide source information, as we do not purchase these minerals directly from mines or smelters and, in many cases, purchase finished goods that are several layers removed from these sources. Accordingly, our suppliers are expected to commit to being or becoming DRC conflict-free and to providing the needed transparency of the supply chain so that components and materials supplied to us are DRC conflict-free. Suppliers are to adopt and implement policies, due diligence frameworks, and management systems, consistent with the OECD Guidance, that are designed to accomplish this goal.
 
We request that our suppliers utilize the Electronic Industry Citizenship Coalition (EICC) and Global e-Sustainability Initiative (GeSI) Conflict Minerals Reporting Template and that our suppliers provide the template to their suppliers successively upstream in order to identify the relevant smelters and refiners. The results of this effort are to be compiled and reported to us through this same template and/or a SaaS solution we provide.
 
 
 
Page 2 of 4

 
 
OECD Guidance Step 2: Identify and assess risk in the supply chain
 
We identified affected suppliers and utilized the Conflict Free Sourcing Initiative’s (“CFSI”) Conflict Minerals Reporting Template (“CMRT”) data collection tool as the basis for our inquiries to identify smelters or refiners in the supply chain. The requested information included policy, supplier expectations, and related compliance efforts. We requested our affected suppliers propagate similar expectations to their sub-suppliers. Documentation reviews were performed of supplier responses and representations using the Conflict-Free Sourcing Program’s conflict free smelters and refiners and country of origin information and other public information available at the time.
 
Capacity building has occurred through the communication of our policy, along with links to websites containing reference materials to the EICC Extractive and Conflict Minerals Resources, EICC-GeSI Conflict-Free Sourcing Initiative, and the OECD website containing the OECD Guidance.
 
OECD Guidance Step 3: Design and implement a strategy to respond to identified risks
 
As a downstream company, we requested that our affected suppliers identify smelters and refiners in the supply chain. We attempted to determine from which countries the smelters and refiners are sourcing through independent validation or assessment schemes (e.g., Conflict-Free Sourcing Program). Findings of those procuring from an unknown source and those from the DRC or adjoining country were reported to senior management.
 
OECD Guidance Step 4: Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain
 
We use the EICC-GeSI Conflict Minerals Reporting Template for supplier inquiries, capacity building reference to websites for the EICC Extractives and Conflict Minerals Resources, EICC-GeSI Conflict-Free Sourcing Initiative, and the OECD Guidance.
 
OECD Guidance Step 5: Report on supply chain due diligence
 
Our public reporting includes our policy and information regarding our management systems, reasonable country of origin inquiry, process to identify facilities (smelters and refiners), and due diligence on the source and origin of the minerals for those reasonably believed to have originated from the DRC or an adjoining country.
 
Steps to Mitigate Risk and Improve Due Diligence
 
Since the end of the 2013 reporting period, we have initiated further program development to improve our mitigation of risk and due diligence. A SaaS database solution has been launched to establish a system of controls and transparency to engage affected suppliers and request supply chain information, including identification of the smelters or refiners in their minerals supply chain. We communicated our conflict minerals policy to our affected suppliers through this system which includes a reference to the OECD Guidance, supplier expectations, and links to websites containing reference material.
 
We anticipate improving our due diligence and mitigation of risk by the following: strengthening engagement with affected suppliers through in-person training sessions, developing contract terms and conditions for policy related expectations and disclosure requirements, attempting to increase the response rate of suppliers to our conflict minerals supply chain inquiries, and increasing our participation in key industry groups to support this effort.
 
 
 
Page 3 of 4

 
 
Due Diligence Results
 
Of the 201 smelters or refiners identified in the RCOI, 76 smelters were certified as conflict free by the Conflict Free Smelter Program (CFSP) or London Bullion Market Association’s (LBMA) Good Delivery Responsible Gold Audit Programme and listed on the associated websites. Smelters identified as active in the CFSP totaled 17 and an additional 33 smelters were found to be on the LBMA’s current Gold Good Delivery List or participating in the CFSP.
 
On the basis of our due diligence for the remaining 75 smelters, we found with respect to the origin and chain of custody that the information failed to provide clarity in this regard nor did the data reveal whether or not the conflict minerals directly or indirectly financed armed groups in the conflict region of the DRC. The known smelter facility types include 2 tantalum smelters, 21 gold refineries, 42 tin smelters, and 10 tungsten smelters. The smelter facility locations include 1 in Belgium, 1 in Bolivia, 1 in Chile, 19 in China, 30 in Indonesia, 6 in Japan, 8 in the Republic of Korea, 2 in Mexico, 1 in Poland, 2 in the Russian Federation, and 4 in the United States. The mine locations are unknown. A list of smelters or refiners identified in the RCOI is attached as Exhibit A to this Conflict Minerals Report.
 

 
 
Page 4 of 4

 
 
 
Exhibit A - Smelter Facility List
Roper Industries, Inc.
 
Gold
Aida Chemical Industries Co. Ltd.
JAPAN
Gold
Allgemeine Gold- und Silberscheideanstalt A.G.
GERMANY
Gold
Almalyk Mining and Metallurgical Complex (AMMC)
UZBEKISTAN
Gold
AngloGold Ashanti Corrego do sitio Minerção
BRAZIL
Gold
Argor-Heraeus SA
SWITZERLAND
Gold
Asahi Pretec Corp
JAPAN
Gold
Asaka Riken Co. Ltd.
JAPAN
Gold
Atasay Kuyumculuk Sanayi Ve Ticaret A.S.
TURKEY
Gold
Aurubis AG
GERMANY
Gold
Bangko Sentral ng Pilipinas (Central Bank of the Philippines)
PHILIPPINES
Gold
Boliden AB
SWEDEN
Gold
Caridad
MEXICO
Gold
CCR Refinery - Glencore Canada Corporation
CANADA
Gold
Cendres & Metaux SA
SWITZERLAND
Gold
Central Bank of the DPR of Korea
KOREA, REPUBLIC OF
Gold
Chimet SpA
ITALY
Gold
Chugai Mining
JAPAN
Gold
Codelco
CHILE
Gold
Daejin Indus Co. Ltd
KOREA, REPUBLIC OF
Gold
DaeryongENC
KOREA, REPUBLIC OF
Gold
Do Sung Corporation
KOREA, REPUBLIC OF
Gold
Dowa
JAPAN
Gold
FSE Novosibirsk Refinery
RUSSIAN FEDERATION
Gold
Heimerle + Meule GmbH
GERMANY
Gold
Heraeus Ltd. Hong Kong
HONG KONG
Gold
Heraeus Precious Metals GmbH & Co. KG
GERMANY
Gold
Hwasung CJ Co., Ltd
KOREA, REPUBLIC OF
Gold
Inner Mongolia Qiankun Gold and Silver Refinery Share Company Limited
China
Gold
Ishifuku Metal Industry Co., Ltd.
JAPAN
Gold
Istanbul Gold Refinery
TURKEY
Gold
Japan Mint
JAPAN
Gold
Jiangxi Copper Company Limited
CHINA
Gold
Johnson Matthey Inc
UNITED STATES
Gold
Johnson Matthey Limited
CANADA
Gold
JSC Ekaterinburg Non-Ferrous Metal Processing Plant
RUSSIAN FEDERATION
Gold
JSC Uralectromed
RUSSIAN FEDERATION
Gold
JX Nippon Mining & Metals Co. Ltd
JAPAN
Gold
KazZinc Ltd
KAZAKHSTAN
Gold
Kennecott Utah Copper LLC
UNITED STATES
Gold
Kojima Chemicals Co.,Ltd
JAPAN
Gold
Korea Metal Co. Ltd
KOREA, REPUBLIC OF
Gold
Kyrgyzaltyn JSC
KYRGYZSTAN
Gold
L' azurde Company For Jewelry
SAUDI ARABIA
Gold
LS-Nikko Copper Inc
KOREA, REPUBLIC OF
 
 
 
Page 1 of 5

 
 
Exhibit A - Smelter Facility List
Roper Industries, Inc.
 
Gold
Materion
UNITED STATES
Gold
Matsuda Sangyo Co. Ltd
JAPAN
Gold
Metalor Technologies (Hong Kong) Ltd
HONG KONG
Gold
Metalor Technologies SA
SWITZERLAND
Gold
Metalor USA Refining Corporation
UNITED STATES
Gold
Met-Mex Penoles, S.A.
MEXICO
Gold
Mistubishi Materials Corporation
JAPAN
Gold
Mitsui Mining and Smelting Co., Ltd.
JAPAN
Gold
Moscow Special Alloys Processing Plant
RUSSIAN FEDERATION
Gold
Nadir Metal Rafineri San. Ve Tic. A.S.
TURKEY
Gold
Navoi Mining and Metallurgical Combinat
UZBEKISTAN
Gold
Nihon Material Co.,Ltd
JAPAN
Gold
Ohio Precious Metals LLC.
UNITED STATES
Gold
OJSC Kolyma Refinery
RUSSIAN FEDERATION
Gold
OJSC The Gulidov Krasnoyarsk Non-Ferrous Metals Plant (OJSC Krastvetmet)
KOREA, REPUBLIC OF
Gold
PAMP SA
SWITZERLAND
Gold
Pan Pacific Copper Co. LTD
JAPAN
Gold
Prioksky Plant of Non-Ferrous Metals
RUSSIAN FEDERATION
Gold
PT Aneka Tambang (Persero) Tbk
INDONESIA
Gold
PX Precinox SA
SWITZERLAND
Gold
Rand Refinery (Pty) Ltd
SOUTH AFRICA
Gold
Royal Canadian Mint
CANADA
Gold
Sabin Metal Corp.
UNITED STATES
Gold
SAMWON METALS Corp.
KOREA, REPUBLIC OF
Gold
Schone Edelmetaal
NETHERLANDS
Gold
SEMPSA Joyeria Plateria SA
SPAIN
Gold
ShanDong Zhaojin Gold & Silver Refining Co;Ltd
CHINA
Gold
So Accurate Group, Inc.
UNITED STATES
Gold
SOE Shyolkovsky Factory of Secondary Precious Metals
RUSSIAN FEDERATION
Gold
Solar Applied Materials Technology Corp.
TAIWAN
Gold
Sumitomo Metal Mining Co. Ltd.
JAPAN
Gold
Suzhou Xingrui Noble
CHINA
Gold
Tanaka Kikinzoku Kogyo K.K.
JAPAN
Gold
The Great Wall Gold and Silver Refinery of China
CHINA
Gold
The Refinery of Shandong Gold Mining Co.. Ltd
CHINA
Gold
Tokuriki Honten Co. Ltd
JAPAN
Gold
Torecom
KOREA, REPUBLIC OF
Gold
Umicore Brasil Ltda
BRAZIL
Gold
Umicore SA Business Unit Precious Metals Refining
BELGIUM
Gold
United Precious Metal Refining, Inc.
UNITED STATES
Gold
Valcambi SA
SWITZERLAND
Gold
Western Australian Mint trading as The Perth Mint
AUSTRALIA
Gold
Yokohama Metal Co., Ltd.
JAPAN
Gold
Zhongyuan Gold Smelter of Zhongjin Gold Corporation
CHINA
 
 
 
Page 2 of 5

 
 
Exhibit A - Smelter Facility List
Roper Industries, Inc.
 
Gold
Zijin Mining Group Co. Ltd
CHINA
Tantalum
Conghua Tantalum and Niobium Smeltry
CHINA
Tantalum
Duoloshan
CHINA
Tantalum
Exotech Inc.
UNITED STATES
Tantalum
F&X Electro-Materials Ltd.
CHINA
Tantalum
Gannon & Scott
UNITED STATES
Tantalum
Global Advanced Metals
UNITED STATES
Tantalum
H.C. Starck Group
GERMANY
Tantalum
Hi-Temp
UNITED STATES
Tantalum
JiuJiang JinXin Nonferrous Metals Co. Ltd.
CHINA
Tantalum
JiuJiang Tambre Co. Ltd.
CHINA
Tantalum
Kemet Blue Powder
UNITED STATES
Tantalum
King-Tan Tantalum Industry Ltd
CHINA
Tantalum
LMS Brasil S.A.
BRAZIL
Tantalum
Mitsui Mining & Smelting
JAPAN
Tantalum
Ningxia Orient Tantalum Industry Co., Ltd. (OTIC)
CHINA
Tantalum
Plansee
AUSTRIA
Tantalum
RFH Tantalum Smeltry Co., Ltd
CHINA
Tantalum
Solikamsk Metal Works
RUSSIAN FEDERATION
Tantalum
Taki Chemicals
JAPAN
Tantalum
Tantalite Resources
SOUTH AFRICA
Tantalum
Telex
UNITED STATES
Tantalum
Ulba
KAZAKHSTAN
Tantalum
Zhuzhou Cement Carbide
CHINA
Tin
Alpha (Cookson)
UNITED STATES
Tin
CNMC (Guangxi) PGMA Co. Ltd.
CHINA
Tin
Cooper Santa
BRAZIL
Tin
CV DS Jaya Abadi
INDONESIA
Tin
CV Duta Putra Bangka
INDONESIA
Tin
CV Gita Pesona
INDONESIA
Tin
CV JusTindo
INDONESIA
Tin
CV Makmur Jaya
INDONESIA
Tin
CV Nurjanah
INDONESIA
Tin
CV Serumpun Sebalai
INDONESIA
Tin
CV United Smelting
INDONESIA
Tin
EM Vinto
BOLIVIA
Tin
Fenix Metals
POLAND
Tin
Geiju Non-Ferrous Metal Processing Co. Ltd.
CHINA
Tin
Gejiu Zi-Li
CHINA
Tin
Gold Bell Group (Guangxi Zhongshan Gold Bell Smelting Corp.Ltd)
CHINA
Tin
Huichang Jinshunda Tin Co. Ltd
CHINA
Tin
Jiangxi Nanshan
CHINA
Tin
Kai Unita Trade Limited Liability Company
CHINA
Tin
Linwu Xianggui Smelter Co
CHINA
 
 
 
Page 3 of 5

 
 
Exhibit A - Smelter Facility List
Roper Industries, Inc.
 
Tin
Liuzhou China Tin
CHINA
Tin
Malaysia Smelting Corp (MSC)
MALAYSIA
Tin
Metallo Chimique
BELGIUM
Tin
Mineracao Taboca S.A.
BRAZIL
Tin
Minmetals Ganzhou Tin Co. Ltd.
CHINA
Tin
Minsur
PERU
Tin
Mitsubishi Materials Corporation
JAPAN
Tin
Novosibirsk Integrated Tin Works
RUSSIAN FEDERATION
Tin
OMSA
BOLIVIA
Tin
PT Alam Lestari Kencana
INDONESIA
Tin
PT Artha Cipta Langgeng
INDONESIA
Tin
PT Babel Inti Perkasa
INDONESIA
Tin
PT Babel Surya Alam Lestari
INDONESIA
Tin
PT Bangka Kudai Tin
INDONESIA
Tin
PT Bangka Putra Karya
INDONESIA
Tin
PT Bangka Timah Utama Sejahtera
INDONESIA
Tin
PT Bangka Tin Industry
INDONESIA
Tin
PT Belitung Industri Sejahtera
INDONESIA
Tin
PT BilliTin Makmur Lestari
INDONESIA
Tin
PT Bukit Timah
INDONESIA
Tin
PT DS Jaya Abadi
INDONESIA
Tin
PT Eunindo Usaha Mandiri
INDONESIA
Tin
PT Fang Di MulTindo
INDONESIA
Tin
PT HP Metals Indonesia
INDONESIA
Tin
PT Karimun Mining
INDONESIA
Tin
PT Koba Tin
INDONESIA
Tin
PT Mitra Stania Prima
INDONESIA
Tin
PT Panca Mega
INDONESIA
Tin
PT Prima Timah Utama
INDONESIA
Tin
PT REFINED BANGKA TIN
INDONESIA
Tin
PT Sariwiguna Binasentosa
INDONESIA
Tin
PT Seirama Tin investment
INDONESIA
Tin
PT Stanindo Inti Perkasa
INDONESIA
Tin
PT Sumber Jaya Indah
INDONESIA
Tin
PT Tambang Timah
INDONESIA
Tin
PT Timah
INDONESIA
Tin
PT Timah Nusantara
INDONESIA
Tin
PT Tinindo Inter Nusa
INDONESIA
Tin
PT Tommy Utama
INDONESIA
Tin
PT Yinchendo Mining Industry
INDONESIA
Tin
Soft Metais Ltda.
BRAZIL
Tin
Thaisarco
THAILAND
Tin
White Solder Metalurgica e Mineracao Ltda.
BRAZIL
Tin
Yunnan Chengfeng
CHINA
 
 
 
Page 4 of 5

 
 
Exhibit A - Smelter Facility List
Roper Industries, Inc.
 
Tin
Yunnan Tin Company Limited
CHINA
Tungsten
A.L.M.T. Corp.
JAPAN
Tungsten
China Minmetals Corp
CHINA
Tungsten
Chongyi Zhangyuan Tungsten Co Ltd
CHINA
Tungsten
Dayu Weiliang Tungsten CO.,LTD
CHINA
Tungsten
Fujian Jinxin Tungsten Co., Ltd.
CHINA
Tungsten
Ganzhou Grand Sea W & Mo Group Co Ltd
CHINA
Tungsten
Ganzhou Huaxing Tungsten
CHINA
Tungsten
Ganzhou HuaYing Tungsten
CHINA
Tungsten
Ganzhou Nonferrous Metals Smelting Co Ltd.
CHINA
Tungsten
Global Tungsten & Powders Corp
UNITED STATES
Tungsten
Guangdong Xianglu Tungsten Industry Co., Ltd.
CHINA
Tungsten
HC Starck GmbH
GERMANY
Tungsten
Hunan Chenzhou Mining Group Co
CHINA
Tungsten
Hunan Chun-chang Non-ferrous Smelting & Concentrating Co., Ltd.
CHINA
Tungsten
Japan New Metals Co Ltd
JAPAN
Tungsten
Jiangxi Minmetals Gao'an Non-ferrous Metals Co., Ltd.
CHINA
Tungsten
Kennametal Fallon
UNITED STATES
Tungsten
Kennametal Huntsville
UNITED STATES
Tungsten
Tejing (Vietnam) Tungsten Co Ltd
VIETNAM
Tungsten
Wolfram Bergbau und Hütten AG
AUSTRIA
Tungsten
Wolfram Company CJSC
RUSSIAN FEDERATION
Tungsten
Xiamen Tungsten Co Ltd
CHINA
Tungsten
Xinhai Rendan Shaoguan Tungsten Co., Ltd.
CHINA
Tungsten
Zhuzhou Cemented Carbide Group Co Ltd
CHINA
 
 
 
Page 5 of 5