EX-1.01 2 exhibit1022014conflictmine.htm EXHIBIT 1.01 Exhibit 1.01 2014 Conflict Minerals Report
Exhibit 1.01

NETGEAR, Inc.
Conflict Minerals Report
For the Year Ended December 31, 2014
Section 1 - Introduction
NETGEAR, Inc. (“NETGEAR”) is a global networking company that delivers innovative products to consumers, businesses and service providers. NETGEAR products are built on a variety of proven technologies such as wireless, Ethernet and powerline, with a focus on reliability and ease-of-use. The product line consists of wired and wireless devices that enable networking, broadband access and network connectivity. These products are available in multiple configurations to address the needs of the end-users in each geographic region in which NETGEAR's products are sold. NETGEAR products are sold in approximately 44,000 retail locations around the globe, and through approximately 33,000 value-added resellers. NETGEAR's headquarters are in San Jose, California, with additional offices in approximately 25 countries.
NETGEAR uses contract manufacturers, original design manufacturers and key component vendors to supply NETGEAR with components, assemblies or finished products.
NETGEAR products are listed in Attachment A to this Conflict Minerals Report.
Section 2 – Design of Due Diligence Measures
2.1 Due Diligence Framework
NETGEAR developed a due diligence framework aligned with Annex I “Five-Step Framework for Risk-Based Due Diligence in the Mineral Supply Chain” included in the Organization for Economic Cooperation and Development (“OECD”) framework.
2.2 Conflict Minerals Policy
NETGEAR has published its conflict minerals policy on its webpage located at: http://www.netgear.com/images/conflict_minerals_policy_statement.pdf.
2.3 Establish strong company management systems
NETGEAR’s Conflict Minerals Program (the “Program”) is incorporated into NETGEAR’s Environmental Management System. NETGEAR requires that suppliers comply with all applicable government, regulatory and environmental laws and regulations, typically as outlined in a master purchase agreement with NETGEAR.

NETGEAR created an Executive Steering Committee (“ESC”) comprised of the following groups to direct and lead the Program: QMS (Quality Management System), environmental compliance, procurement, legal, finance and internal audit. This group reported to the Senior Vice President of Worldwide Operations and Support.

NETGEAR also created two grievance mechanisms (online or by mail) to allow customers, employees, suppliers and interested parties to document their concerns about the Program.

2.4 Identify and assess risk in the supply chain
The scope of the suppliers assessed for compliance was limited to Tier 1 suppliers, as defined below:
i.
Tier 1 Supplier - ODM (Original Design Manufacturer), CM (Contract Manufacturer) and NETGEAR’s AVL (Approved Vendor List) over whom NETGEAR has direct control, but excluding the following suppliers:
a.
Plastics and software suppliers;

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b.
Packaging suppliers; and
c.
Suppliers whose materials declarations confirm gold, tantalum, tin and tungsten are not contained in the applicable component.
ii.
Direct Control – NETGEAR has directly negotiated the pricing with the supplier.

In 2014, NETGEAR identified 69 Tier 1 suppliers. As part of the Program’s refresh, these suppliers were notified via email regarding NETGEAR’s Conflict Minerals policy and program expectations on June 30, 2014.

2.5 Reasonable Country of Origin Inquiry (“RCOI”)
The goal for 2014 was to receive complete and accurate smelter information from NETGEAR’s Tier 1 suppliers. To facilitate meeting this goal, NETGEAR conducted a survey of those suppliers described above using the template developed by the Electronic Industry Citizenship Coalition (“EICC”) and the Global e-Sustainability Initiative (“GeSI”), known as the CFS Reporting Template (“CFSI Template”).
The CFSI Template is the standardized reporting template developed by the Conflict-Free Sourcing Initiative (“CFSI”).
Upon receipt of the supplier’s responses, NETGEAR undertook the following steps:
A.
Checked the supplier’s attestations provided for incomplete, contradictory, or missing responses;
B.
Analyzed and scored the supplier’s responses;
C.
Identified valid smelters.
As outlined in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, the internationally recognized standard on which NETGEAR’s system is based, NETGEAR supports the EICC and GeSI’s Conflict-Free Sourcing Initiative that audits smelters’ and refiners’ due diligence activities. The data on which we relied for certain statements in this declaration was obtained through our membership in the CFSI.
As part of RCOI, NETGEAR identified 13 smelters who were sourcing from the Democratic Republic of the Congo (“DRC”) or its adjoining countries.
Section 3 – Due Diligence
3.1 Due Diligence Undertaken
The ESC discussed and agreed that NETGEAR would focus on those Tier 1 suppliers over which it has direct control. The Tier 1 suppliers were responsible for managing the chain of custody for their direct suppliers.
The CFSI template was determined to be the best method to collect information from Tier 1 suppliers in order to identify and assess risks from direct suppliers. NETGEAR collected the CFSI templates from 100% of its 69 Tier 1 suppliers. NETGEAR tracked all responses from suppliers and, based on those responses, assigned a score based on multiple criteria. Any suppliers that exceeded our internal threshold limits then were deemed to have low potential risk. Any supplier falling below our internal threshold limits were deemed to have a potential high risk.
NETGEAR leveraged its membership in the CFSI to obtain the smelter status within the Conflict Free Smelter Program (“CFSP”). NETGEAR then reviewed the smelters and refiners received from Tier 1 suppliers. Any smelters or refiners found not in compliance with the CFSP or equivalent independent third-party audit programs were flagged and NETGEAR notified the Tier 1 suppliers to remove them.
 
3.2 Results of Due Diligence
Of the 69 Tier 1 suppliers, none achieved scores less than our internal threshold that would identify them as being high risk. Based on the CFSI template responses from NETGEAR’s Tier 1 suppliers, NETGEAR had identified 180 CFSI

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Compliant smelters and On Active Smelters. On Active Smelters are smelters currently participating in a CFSP or independent third party audit for Conflict Minerals Compliance. The smelters and/or refiners listed in Attachment B were provided by NETGEAR’s Tier 1 suppliers and were confirmed to be CFSI Compliant or On Active List using CFSI’s Master List dated February 26, 2015, which applied to NETGEAR’s 2014 due diligence activities.
Of the 13 smelters that NETGEAR identified as sourcing from the DRC or its adjoining countries, NETGEAR confirmed all 13 to be CFSI compliant based on CFSI’s RCOI list dated February 26, 2015.

3.3 Carry out independent third-party audit of supply chain due diligence at identified points in the supply chain
At the end of 2014, the majority of NETGEAR’s Tier 1 suppliers have confirmed via the CFSI Template that they are or will require their suppliers to be compliant with the CFSP. NETGEAR’s goal is to have the Tier 1 suppliers be compliant with the Program’s expectations. NETGEAR relied on data provided by the CFSP, equivalent independent third-party audit programs, or publicly available information to drive compliance at the smelter and refiner level. The CFSP is a global program under which an independent third party evaluates a smelter’s procurement activities and determines if the smelter has demonstrated that materials they processed originated from conflict-free sources. Through this industry collaborative effort, smelters are audited globally. The list of compliant smelters and refiners is posted at www.conflictfreesmelter.org.
Attachment B includes a list of the smelters/refiners used by NETGEAR’s suppliers to process 3TG minerals that are CFSI compliant or On Active List.

Section 4 – Risk Mitigation and Future Due Diligence Processes
4.1     Design and implement a strategy to respond to identified risks
Monthly meetings on the progress of surveying NETGEAR’s suppliers were held with the ESC, and meeting minutes were documented. Additional meetings with the ESC were scheduled as necessary. Actions to be taken on the Tier 1 suppliers were also documented. Senior management was updated quarterly or as necessary.

4.2     Future Due Diligence Processes
We intend to take the following steps to improve the due diligence conducted to further mitigate any risk that the necessary conflict minerals in our products could benefit armed groups in the DRC or adjoining countries:
Continue to work with suppliers to ensure that they have robust due diligence practices;
Continue to request suppliers to provide accurate, valid, and complete smelter information;
Work with suppliers to fill out CFSI’s Smelter Information Questionnaire (“SIQ”) for their suppliers with any smelters that are not yet identified by the CFSP or equivalent independent third-party audit programs;
Require Tier 1 suppliers to encourage their smelters or refiners not yet identified by the CFSP or equivalent independent third-party audit to undergo smelter audits and verify compliance;
Conduct smelter visit(s).
Management’s intent is to continue surveying NETGEAR’s suppliers annually to obtain the latest update on this status and to perform due diligence on Tier 1 Supplier responses to ensure their accuracy.
On an annual basis, should any risks be identified during the review of the Tier 1 supplier responses or changes in the supplier list, NETGEAR will develop a plan to obtain additional facts or clarification on the materials chain of custody to mitigate the potential risk to NETGEAR.
Section 5 – Independent Private Sector Audit
This Conflict Minerals Report was not subjected to an independent private sector audit, as such was not required by paragraph (c)(1)(iv) of the instructions to Item 1.01 of Form SD.


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Attachment A – Product Families
NETGEAR’s product families covered under the Program are listed below:

Ethernet switches, which are multiple port devices used to network computing devices and peripherals via Ethernet wiring;
Wireless controllers and access points, which are devices used to manage and control multiple WiFi base stations on a campus or a facility providing WiFi connections to smart phones, tablets, laptops and other computing devices;
Internet security appliances, which provide Internet access through capabilities such as anti-virus and anti-spam;
Unified storage, which delivers file and block based data into a single shared storage system, meeting the demands of small enterprises, education, hospitality and health markets through an easy-to-use interface for managing multiple storage protocols;
Gateways, which are routers with integrated modems, for Internet access;
Hotspots, which are 3G and 4G LTE WiFi access points that enable people to access the Internet on the go, and/or for use at home in place of traditional wired broadband;
IP telephony products, used for transmitting voice communications over a network;
Media servers, which store files and multimedia content for access by tablets, laptops, smart phones and other Internet enabled devices;
Routers, which connect the home or office networks to the Internet via broadband modems;
WiFi range extenders, which extend the range of the WiFi home network to eliminate dead zones;
Media adapters, which connect TVs, audio players, and game consoles to a network or wirelessly display the contents of your smart phone, laptop or tablet to a big screen TV;
Powerline adapters and bridges, which enable devices to be connected to the network over existing electrical wiring;
Multimedia over Coax Alliance standard (“MoCA”) adapters and bridges, which enable devices to be connected to the network over existing coaxial wiring;
Remote video security systems, which provide wire-free security accessible by smart phone, tablet or PC and MAC;
Wireless network interface cards and adapters, which enable devices to be connected to the network wirelessly; and
Ethernet network interface cards and adapters, which enable devices to be connected to the network over Ethernet wiring.




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Attachment B - Smelter Listing
This list includes the names of all CFSI compliant and On Active smelters or refiners that NETGEAR has identified through the CFSI:
Metal
Smelter Name
Country
Gold
Aida Chemical Industries Co. Ltd.
JAPAN
Gold
Allgemeine Gold- und Silberscheideanstalt A.G.
GERMANY
Gold
AngloGold Ashanti Córrego do Sítio 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
Boliden AB
SWEDEN
Gold
C. Hafner GmbH + Co. KG
GERMANY
Gold
CCR Refinery - Glencore Canada Corporation
CANADA
Gold
Cendres & Metaux SA
SWITZERLAND
Gold
Chimet S.p.A.
ITALY
Gold
Dowa
JAPAN
Gold
ECO-SYSTEM RECYCLING
JAPAN
Gold
Heimerle + Meule GmbH
GERMANY
Gold
Heraeus
SWITZERLAND
Gold
Heraeus Precious Metals GmbH & Co. KG
GERMANY
Gold
Ishifuku Metal Industry Co., Ltd.
JAPAN
Gold
Istanbul Gold Refinery
TURKEY
Gold
Japan Mint
JAPAN
Gold
Johnson Matthey Inc
UNITED STATES
Gold
Johnson Matthey Limited
CANADA
Gold
JSC Ekaterinburg Non-Ferrous Metal Processing Plant
RUSSIAN FEDERATION
Gold
JX Nippon Mining & Metals Co., Ltd
JAPAN
Gold
Kazzinc Ltd
KAZAKHSTAN
Gold
Kennecott Utah Copper
UNITED STATES
Gold
Kojima Chemicals Co. Ltd
JAPAN
Gold
L' azurde Company For Jewelry
SAUDI ARABIA
Gold
LS-Nikko Copper Inc
KOREA, REPUBLIC OF
Gold
Materion
UNITED STATES
Gold
Matsuda Sangyo Co. Ltd
JAPAN
Gold
Metalor HK
HONG KONG
Gold
Metalor Technologies (Singapore) Pte. Ltd.
SINGAPORE
Gold
Metalor
UNITED STATES
Gold
Metalor USA
UNITED STATES

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Metal
Smelter Name
Country
Gold
METALÚRGICA MET-MEX PEÑOLES, S.A. DE C.V
MEXICO
Gold
Mitsubishi Materials Corporation
JAPAN
Gold
Mitsui & Co. Precious Metals Inc. Hong Kong Branch
HONG KONG
Gold
Nadir Metal Rafineri San. Ve Tic. A.Ş.
TURKEY
Gold
Nihon Material Co. LTD
JAPAN
Gold
Ohio Precious Metals
UNITED STATES
Gold
Ohura Precious Metal Industry Co., Ltd
JAPAN
Gold
OJSC “The Gulidov Krasnoyarsk Non-Ferrous Metals Plant” (OJSC Krastvetmet)
RUSSIAN FEDERATION
Gold
PAMP SA
SWITZERLAND
Gold
PT Aneka Tambang (Persero) Tbk
INDONESIA
Gold
PX Précinox SA
SWITZERLAND
Gold
Rand Refinery (Pty) Ltd
SOUTH AFRICA
Gold
Royal Canadian Mint
CANADA
Gold
Sabin Metal Corp.
UNITED STATES
Gold
Schone Edelmetaal
NETHERLANDS
Gold
SEMPSA
SPAIN
Gold
Shandong Zhaojin Gold & Silver Refinery Co. Ltd
CHINA
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
Tanaka Kikinzoku Kogyo K.K.
JAPAN
Gold
Shandong Gold Mining Co., Ltd
CHINA
Gold
Tokuriki Honten Co. Ltd
JAPAN
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
YAMAMOTO PRECIOUS METAL CO., LTD.
JAPAN
Gold
Yokohama Metal Co Ltd
JAPAN
Gold
Umicore Precious Metals Thailand
THAILAND
Tantalum
Changsha South Tantalum Niobium Co., Ltd.
CHINA
Tantalum
Conghua Tantalum and Niobium Smeltry
CHINA
Tantalum
Duoluoshan
CHINA
Tantalum
Exotech Inc.
UNITED STATES
Tantalum
F&X Electro-Materials Ltd.
CHINA
Tantalum
Guangdong Zhiyuan New Material Co., Ltd.
CHINA
Tantalum
Hi-Temp
UNITED STATES
Tantalum
Jiujiang Jinxin Nonferous Metals Co., Ltd
CHINA
Tantalum
JiuJiang Tambre Co. Ltd.
CHINA

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Metal
Smelter Name
Country
Tantalum
King-Tan Tantalum Industry Ltd
CHINA
Tantalum
LSM Brasil S.A.
BRAZIL
Tantalum
Metallurgical Products India (Pvt.) Ltd.
INDIA
Tantalum
Mineração Taboca S.A.
BRAZIL
Tantalum
Mitsui Mining & Smelting
JAPAN
Tantalum
Molycorp Silmet A.S.
ESTONIA
Tantalum
Ningxia Orient Tantalum Industry Co., Ltd.
CHINA
Tantalum
QuantumClean
UNITED STATES
Tantalum
RFH
CHINA
Tantalum
Solikamsk Magnesium Works OAO
RUSSIAN FEDERATION
Tantalum
Taki Chemicals
JAPAN
Tantalum
Telex
UNITED STATES
Tantalum
Ulba
KAZAKHSTAN
Tantalum
Zhuzhou Cement Carbide
CHINA
Tantalum
Yichun Jin Yang Rare Metal Co., Ltd
CHINA
Tantalum
Global Advanced Metals
UNITED STATES
Tantalum
Hengyang King Xing Lifeng New Materials Co., Ltd.
CHINA
Tantalum
Guizhou Zhenhua Xinyun Technology Ltd., Kaili branch
CHINA
Tantalum
KEMET Blue Metals
MEXICO
Tantalum
Plansee SE Liezen
AUSTRIA
Tantalum
H.C. Starck Co., Ltd.
GERMANY
Tantalum
H.C. Starck GmbH Goslar
GERMANY
Tantalum
H.C. Starck GmbH Laufenburg
GERMANY
Tantalum
H.C. Starck Hermsdorf GmbH
GERMANY
Tantalum
H.C. Starck Inc.
UNITED STATES
Tantalum
H.C. Starck Ltd.
JAPAN
Tantalum
H.C. Starck Smelting GmbH & Co.KG
GERMANY
Tantalum
Plansee SE Reutte
AUSTRIA
Tantalum
Global Advanced Metals Boyertown
UNITED STATES
Tantalum
Global Advanced Metals Aizu
UNITED STATES
Tantalum
Kemet Blue Powder
UNITED STATES
Tin
China Rare Metal Materials Company
CHINA
Tin
Alpha
UNITED STATES
Tin
Cooper Santa
BRAZIL
Tin
CV Gita Pesona
INDONESIA
Tin
CV JusTindo
INDONESIA
Tin
CV Nurjanah
INDONESIA
Tin
CV Serumpun Sebalai
INDONESIA
Tin
 CV United Smelting
INDONESIA
Tin
Dowa
JAPAN
Tin
EM Vinto
BOLIVIA

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Metal
Smelter Name
Country
Tin
Fenix Metals
POLAND
Tin
Geiju Non-Ferrous Metal Processing Co. Ltd.
CHINA
Tin
China Tin Group Co., Ltd.
CHINA
Tin
Malaysia Smelting Corp
MALAYSIA
Tin
Metallo Chimique
BELGIUM
Tin
Mineração Taboca S.A.
BRAZIL
Tin
Amalgamet
UNITED STATES
Tin
Mitsubishi Materials Corporation
JAPAN
Tin
O.M. Manufacturing (Thailand) Co., Ltd.
THAILAND
Tin
OMSA
BOLIVIA
Tin
PT Artha Cipta Langgeng
INDONESIA
Tin
PT Babel Inti Perkasa
INDONESIA
Tin
PT Bangka Putra Karya
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 Karimun Mining
INDONESIA
Tin
PT Mitra Stania Prima
INDONESIA
Tin
PT Panca Mega Persada
INDONESIA
Tin
CV Prima Timah Utama
INDONESIA
Tin
PT REFINED BANGKA TIN
INDONESIA
Tin
PT Sariwiguna Binasentosa
INDONESIA
Tin
PT Stanindo Inti Perkasa
INDONESIA
Tin
PT Sumber Jaya Indah
INDONESIA
Tin
PT Tambang Timah
INDONESIA
Tin
PT Timah
INDONESIA
Tin
PT Tinindo Inter Nusa
INDONESIA
Tin
Rui Da Hung
TAIWAN
Tin
Soft Metais, Ltda.
BRAZIL
Tin
Thailand Smelting & Refining Co., Ltd.
THAILAND
Tin
White Solder Metalurgia e Mineração Ltda.
BRAZIL
Tin
Yunnan Chengfeng
CHINA
Tin
YUN NAN TIN CO.LTD
CHINA
Tin
Magnu's Minerais Metais e Ligas LTDA
BRAZIL
Tin
Melt Metais e Ligas S/A
BRAZIL
Tin
PT ATD Makmur Mandiri Jaya
INDONESIA
Tin
O.M. Manufacturing Philippines, Inc.
PHILIPPINES
Tin
PT Inti Stania Prima
INDONESIA
Tin
Cooper Santa
BRAZIL

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Metal
Smelter Name
Country
Tungsten
Guangdong Xianglu Tungsten Co., Ltd.
CHINA
Tungsten
Chongyi Zhangyuan Tungsten Co Ltd
CHINA
Tungsten
Fujian Jinxin Tungsten Co., Ltd.
CHINA
Tungsten
Global Tungsten & Powders Corp
UNITED STATES
Tungsten
Hunan Chunchang Nonferrous Metals Co., Ltd.
CHINA
Tungsten
Japan New Metal
JAPAN
Tungsten
Ganzhou Non-ferrous Metals Smelting Co., Ltd.
CHINA
Tungsten
Ganzhou Huaxing Tungsten Products Co., Ltd.
CHINA
Tungsten
Vietnam Youngsun Tungsten Industry Co., Ltd
VIETNAM
Tungsten
Wolfram Bergbau und Hutten AG
AUSTRIA
Tungsten
Xiamen Tungsten Co Ltd
CHINA
Tungsten
Xinhai Rendan Shaoguan Tungsten Co., Ltd.
CHINA
Tungsten
Ganzhou Jiangwu Ferrotungsten Co., Ltd.
CHINA
Tungsten
Malipo Haiyu Tungsten Co., Ltd.
CHINA
Tungsten
Xiamen Tungsten (H.C.) Co., Ltd.
CHINA
Tungsten
Jiangxi Gan Bei Tungsten Co., Ltd.
CHINA
Tungsten
Ganzhou Seadragon W & Mo Co., Ltd.
CHINA
Tungsten
Chenzhou Diamond Tungsten Products Co., Ltd.
CHINA
Tungsten
H.C. Starck Smelting GmbH & Co.KG
GERMANY
Tungsten
Nui Phao H.C. Starck Tungsten Chemicals Manufacturing LLC
VIETNAM
Tungsten
Jiangwu H.C. Starck Tungsten Products Co., Ltd.
CHINA


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