1. Tina | Procurement Controls & Sustainability Procurement Sustainability (Apr. 2014) 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.

2. 2 Sustainability Metric Reporting Overview 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.  Sustainability Metric Reporting concentrate on 3 areas: -Base Program: EICC Agmt Coverage, EICC-ON Self-Assessment Questionnaire, EICC Audits/Compliance -Environmental Data: Green House-Gas Emissions, Water Usage & Waste -Conflict Minerals: Responsible sourcing on Tin, Tantalum, Tungsten & Gold from Central Africa ProgramObjectives All Programs 90% Minimum Overall Procurement Spend in each of all three programs But stretch goal of 95% (marketplace could single out any Lenovo supplier for attention!) Base Program EICC Executed Agmt. or EICC Member Company Coverage: 98% EICC-ON Use/ Self-Assessments (every 12 months): 90% Timely Audits (every 24 months) or confirmed schedule audit date: 90% Aged Audits: <1 By Sourcing Exec < 5 Overall Corrective Action Plans: Within 60 Days post audit Audit Results: No firm target but prefer > 80% Overall, weighted score >160 points, and results improve 5% from audit to audit Environmental DataNo firm target but focus on complete reporting and suppliers have reduction goals Conflict Minerals No firm target but focus on complete survey response, surveys are pushed to their suppliers, identification of smelters & refiners, and driving towards conflict-free compliant designations

3. 3 Sustainability Metrics – Apr. 2014 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.  Drive suppliers to complete EICC environment report ASAP.  Drive suppliers to complete EICC-ON system renewal.  All Teams need to be proactive on upcoming and aged EICC audits EICC Agreements EICC-On USE/Self- Assessment Questionnaire (SAQ) AuditsConflict Mineral Campaign Sourcing Exec. EICCA CoverageEICC Assessment ToolAudit CoverageAged Audits Audits Aging in 6 Months EICC Due Diligence Report(EICC DD Report) Overall98%97%87%720100% Supplier Audit Results 1 st Audit 2 nd Audit 3 rd Audit Average (All Suppliers) 86%92%90% Sourcing Exec Agmt Coverage SAQ Coverage Audit Coverage Aged Audit Conflict Mineral/EICC DD Report Liu Jie100% 0 J Gross89%86%82%0100% J Gannfors100% 0 S Yin100% 96%1100% WT Yang100% 77%6100% J Zapko99%N/A Tower Missed Objectives / Needed Action:

4. 4 EICC Compliance Review – Liu Jie 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. EICC Agreements EICC-On USE /Self-Assessment Questionnaire AuditsConflict Mineral Campaign Sourcing Exec.EICCA CoverageEICC Assessment Tool Audit Coverage Aged Audits Audits Ageing in 6 Months EICC Due Diligence Report Liu Jie100% 00 Supplier 1 st Audit 2 nd Audit Intel91% Low Risk, Audit not required Cybertan87%Not Due Liteon94%Not Due Sustain Action# Suppliers# Reported% Complete EICC-ON33100% GHG-2014 EICC Environ. Reporting 300% Conflict Mineral/EICC DD Report 55100% SUPPLIER EICC Audits Status: Supplier Audit Results 1 st Audit 2 nd Audit Average (All Suppliers) 91%N/A Notes: - AMD’s audit is not required due to low risk. - Cyber OEM; Foxconn (Chongqing) - Sierra Wireless OEM; Flextronics(Zhuhai) - Nvidia is fabless company and exempted from EICC Audit ODM Supplier & Site Commodity Performed GCM Cybertan/Foxconn (Chongqing) CommsChao Yang Notes: -2014 EICC Environmental Reporting Deadline: July. 18,2014

5. 5 EICC Compliance Review – J. Gross 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. Sustain Action# Suppliers# Reported% Complete EICC-ON221986% GHG-2014 EICC Environ. Reporting 1100% Conflict Mineral/EICC DD Report 25 100% EICC Agreements EICC-On USE/Self- Assessment Questionnaire AuditsConflict Mineral Campaign Sourcing Exec.EICCA CoverageEICC Assessment ToolAudit CoverageAged Audits Audits Ageing in 6 Months EICC Due Diligence Report J Gross89%86%82%00100% Supplier 1 st Audit 2 nd Audit 3 rd Audit Flex92%99%Not Due Quanta (Shanghai) 78%95%85% Quanta (Changshu) 85%Not DueN/A Wistron (Kunshan)92%89%91% Taisol95%89%82% USI91%89%Not Due LCFC92%Not DueN/A Goodway81%Not DueN/A Thinkwise21%26%N/A S/Sanyo58%Not DueN/A SUPPLIER EICC Audits Status: Supplier Audit Results 1 st Audit 2 nd Audit 3 rd Audit Average (All Suppliers) 79%92%86%  Start to track all ODM suppliers’ facilities’ EICC compliance (refer to page 6)  4 supplier added to the tracking list for EICC compliance (refer to page 6)  2 suppliers audits aging in 6 months ： Goodway & Shimane Sanyo(UMC) (refer to page 16) Notes: -2014 EICC Environmental Reporting Deadline: July. 18,2014

6. 6 Open Issues & Action Required – J. Gross 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. ODM Supplier & SiteCommodityPerformed GCMStatus Quanta (ShangHai)NB IPG/Edge/Shell;MedionJing Ge/Jarod TaoInternal audit done Quanta (ChongQing)NB TPGJing Ge Wistron (KunShan)NB IPG/Edge/AIO;MIDH;MedionLinhui Xiong had provided audit ： 2013-12-17 Wistron (ChengDu)NB IPG/EdgeLinhui Xiong Bitland (Hefei)NB TPGAllen Liu Pegatron (ShangHai)NB TPG;MIDH;MedionDennis Xiong Compal (KunShan)NB IPG/Edge/Shell;MedionDennis Xiong/Allen Liu Compal (ChengDu)NB TPGDennis Xiong/Allen Liu  ODM Supplier Tracking  4 supplier need to complete EICC compliance (EICC Compliance include : EICCA, EICC-ON and EICC Audit) Supplier NameActions RequiredPerforming GCMsTarget DateStatus Toshiba Home Tech.EICC Compliance Implementation: 3 actions (EICC Audit) Winy SuiMay.31.2014Working on EICC Audit. Plan to complete by May. 2014 PegatronEICC Compliance Implementation: 2 actions (EICC-ON and EICC Audit) Dennis Xiong (linhui xiong) Oct.2014Completed EICC-ON & SAQ, commit to complete audit by Oct. 2014 DafonEICC Compliance Implementation: 3 actions (EICCA,EICC-ON and EICC Audit) Xiang KeTBD BisonEICC Compliance Implementation: 3 actions (EICCA,EICC-ON and EICC Audit) Xiang KeTBD

7. 7 EICC Compliance Review – J Gannfors 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. Sustain Action# Suppliers# Reported% Complete EICC-ON77100% Conflict Mineral/EICC DD Report 77100% GHG-2014 EICC Environ. Reporting 100% EICC Agreements1 EICC-On USE/Self-Assessment Questionnaire AuditsConflict Mineral Campaign Sourcing Exec.EICCA CoverageEICC Assessment Tool Audit Coverage Aged Audits Audits Ageing in 6 Months EICC Due Diligence Report J Gannfors100% 00 SUPPLIER EICC Audits Status: Supplier Audit Results 1 st Audit 2 nd Audit 3rd Audit Average (All Suppliers) 82%88%93%  1 supplier(EMC) is added with 6mons grace period ( Mar, 2014-Sept. 2014)  1 supplier audit aging in 6 months: CIS (refer to page 16) Supplier 1st Audit 2nd Audit 3rd Audit CIS73%82%Not Due Karrie91%93% Notes: Emulex OEM: Flex.(Zhuhai) Dothill: Foxconn (Wuhan) LSI OEM: TIIN Notes: -2014 EICC Environmental Reporting Deadline: July. 18,2014

8. 8 EICC Compliance Review – S. Yin Sustain Action# Suppliers# Reported% Complete EICC-On42 100% GHG-2014 EICC Environ. Reporting 2200% Conflict Mineral/EICC DD Report 44 100% EICC Agreements EICC-On USE/Self-Assessment Questionnaire AuditsConflict Mineral Campaign Sourcing Exec.EICCA CoverageEICC Assessment Tool Audit Coverage Aged Audits Audits Ageing in 6 Months EICC Due Diligence Report S Yin100% 96%18100% Supplier Audit Results 1 st Audit 2 nd Audit 3rd Audit Average (All Suppliers) 84%87% SUPPLIER EICC Audits Status:  Start to track all ODM suppliers’ facilities’ EICC compliance (refer to page 9)  8 Suppliers’ audits aging in 6 months (refer to page 9)  1 supplier audit had aged: Bitland (refer to page 9) Supplier 1 st Audit 2 nd Audit 3 rd Audit Longwell96%72%Not Due JME85%Not Due Grandsun83%89%Not Due MSI89%82%95% Comlink68%83%Not Due TIN94%Not Due YiFang88%Not Due A-Max91% MeiZhiZun64%55%Not Due ECS78%86%76% Liteon93%96%94% Supplier 1 st Audit 2 nd Audit 3 rd Audit AVC89%91%92% Jiatian94%93%90% Acbel97%93%Not Due Beitianli97%94%Not Due Brother77%90%Not Due Volex77%97%87% Primax86%90%Not Due Chicony98%93%Not Due Cosnic58%Not Due Huntkey94%96%85% Luxshare75%93%Not Due Bitland82%81%Aged Notes: -2014 EICC Environmental Reporting Deadline: July. 18,2014

9. 9 Open Issues & Action Required – S Yin  8 Suppliers’ Audits Ageing in 6 Months SupplierLocation Previous Audit Date CommodityPerforming GCM Sourcing Exec. PrimaxDongguan2012-7-3Mice&KBAnnie Liu Steven ChiconySuzhou2012-12-6Power SupplyMandy XiaSteven ComlinkShenzhen2012-12-24CableRufus ZX2 DongSteven CosonicDongguan2012-10-24HeadsetSophia LiSteven GrandsunShenzhen 2012-11-12 Cable Rufus ZX2 Dong Steven JMEShenzhen 2012-10-10 Mech. Mandy Xia Steven LogitechSuzhou 2012-12-12 Mice Mandy Xia/Grace Jin./ Sherman Xie Steven TINShanghai 2012-12-11 ODM XiaoQing Ma/Peizhong Zhao Steven  1 supplier audit had aged: Bitland SupplierLocationCommodityPerforming GCM Previous Audit Date AuditorAged Audit Comments Sourcing Exec. BitlandShenzhenECAT Xuan Yang/XiaoQing Ma 2012-5-26 (will complete at 2014-5-23) 3 rd Party AgedNeed to confirm audit scheduleSteven

10. 10 EICC Compliance Review – WT Yang 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. Sustain Action # Suppliers # Reported % Complete EICC-ON25 100% GHG-2014 EICC Environ. Reporting 2300% Conflict Mineral/EICC DD Report 26 100% EICC Agreements EICC-On USE/Self-Assessment Questionnaire AuditsConflict Mineral Campaign Sourcing Exec.EICCA CoverageEICC Assessment Tool Audit Coverage Aged Audits Audits Ageing in 6 Months EICC Due Diligence Report WT Yang100% 77%69100% SUPPLIER EICC Audits Status: Supplier Audit Results 1 st Audit 2 nd Audit 3 rd Audit Average (All Suppliers) 83%94%89%  Start to track all ODM suppliers’ facilities’ EICC compliance (Refer to page 11)  8 suppliers’ EICC audit report need to be refreshed (refer to page 11)  9 Suppliers’ audits aging in 6 months(Refer to page 12)  Suppliers need renew the EICC-ON in 2014 (Pls refer to page 12) Supplier 1 st Audit 2 nd Audit 3 rd Audit Delta72%96% Not Due Chicony Power 78%Not Due Hynix60%10.2014 Sanyo97%Not Due Seagate (Wuxi) 97%99%Aged Seagate (Suzhou) 98% Not Due HLDS76%93% Ramaxel94%Not Due Supplier 1st Audit 2nd Audit WD96%Not Due Sony91%Not Due Sharetronic61%Not Due Panasonic92%85% PLDS88%Aged Samsung100%Not Due TSST80%Not Due Simplo (C.S.) 88%Not Due Simplo (C.Q.) 86%Not Due Supplier 1st Audit 2nd Audit 3 rd Audit AUO92%96%Not Due BOE98%Late Innolux91%Late IVO82%Not Due LG Chem89%83% LGD(GZ)62%90%Late LGD(NJ)67%86%Late TPV55%95%89% Micron working Notes: -2014 EICC Environmental Reporting Deadline: July. 18,2014

11. 11 Open Issues and Action Required – WT Yang  EICC Audit Report Refreshment (Aged Audit) and CAP (Corrective Action Plan) ODM Supplier & SiteCommodityPerformed GCM InnoluxPanelJoe Peng TPVMonitor;MedionByron Jin Foxconn Display(CMMSG)MonitorByron Jin Wistron DisplayMonitorByron Jin  ODM Supplier Tracking Supplier NameActions RequiredPerforming GCMsTarget DateStatus HynixNeed to refresh the EICC audit reportAngela WangOct. 2014commit to complete by Oct. 2014 BOENeed to refresh the EICC audit reportLei GuChecking with supplier for audit schedule InnoluxNeed to refresh the EICC audit reportLei GuInternal audit done, but not receive audit report MicronNeed to refresh the EICC audit reportTerry DingFinishedHad finished audit and now waiting for EICC team’s report. LGD(SZ&NJ)Need to refresh the EICC audit reportChecking with supplier for audit schedule ToshibaNeed to refresh the EICC audit reportKitty RL Zhang/Jeff LuoChecking with supplier for audit schedule SeagateNeed to refresh the EICC audit reportKitty RL Zhang/Jeff LuoChecking with supplier for audit schedule PLDS(Philips- Liteon) Need to refresh the EICC audit reportWheeler Yan/Ocean Zhang Checking with supplier for audit schedule

12. 12  9 Suppliers’ Audits Ageing in 6 Months Open Issues & Action Required – WT Yang EICC-ON Renewal Supplier NamePerforming GCMsTarget Completion DateCurrent Status Dong Guan Han Yang computer CO.LTD April. 2014 Lapsed HEFEI BOE OPTOELECTRONICS TECHNOLOGY CO.,LTD.Lei Gu Lapsed PLDSWheeler Yan/Ocean Zhang Lapsed SupplierLocation Previous Audit Date CommodityPerforming GCM Sourcing Exec. Simplo ChangshuChangshu2012-7-9BatteryJukka SongWentao Simplo ChongqingChongqing2012-7-30BatteryJukka SongWentao TPVFuqing2012-7-5PanelIris Y ZhangWentao WDThailand2012-7-17HDDKitty RL Zhang/Jeff LuoWentao SamsungSuzhou2012-6-13MemoryAngela WangWentao IVOKunshan 2012-12-24 Visual Lei Gu Wentao RamaxelHuizhou 2012-12-26 Memory Terry Ding Wentao SharetronicsDongguan 2012-9-29 Memory ？？ Wentao TSSTDongguan 2012-12-5 ODD Wheeler Yan/Ocean Zhang Wentao

13. 13 EICC Compliance Review – J. Zapko 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.  4 suppliers joined in GHG/Water Reporting and complete EICC Agreements Sourcing Exec.EICCA Coverage J.Zapko100% EICC Environmental Reporting Status: Sustain Action# Suppliers# Reported% Complete GHG-2013 EICC Environ. Reporting 44100% Notes: - 2013 EICC Environmental Reporting Deadline: Aug. 31, 2013

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15. 15 EICC Audit Concerns (By Suppliers) 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED.  10 Suppliers have audits conducted on them. SupplierLocationCommodityPerforming GCM Previous Audit Date AuditorAged Audit Comments Sourcing Exec. BOEBeijingPanelLei Gu2010/083 rd PartyLate Commit to do the audit in Aug 2013 WT Yang HynixKoreaMemoryAngela Wang2011/053 rd PartyLate Commit to do the audit in Oct. 2014 WT Yang InnoluxNingboPanelLei Gu2011/083 rd PartyLateAudit done, not yet rcvdWT Yang MicronXI’ANMemoryTerry Ding2011/11Internal AuditAged finished and waiting for EICC report WT Yang LGDGZ & NanJingPanelLei Gu2011/123 rd PartyAgedNeed to confirm audit scheduleWT Yang ToshibaHDDKitty RL Zhang/Jeff LuoLate Commit to do the audit in 31 st May 2014 WT Yang BitlandShenzhenECAT Xuan Yang/XiaoQing Ma 2012-5-26 (will complete at 2014-5-23) 3 rd Party AgedNeed to confirm audit scheduleSteven PLDSGuangzhou ODD (OEM Manufacture of PLDS and Sony) Wheeler Yan/Ocean Zhang 2012-5-213 rd PartyAgedNeed to confirm audit scheduleWT Yang Seagate SuzhouSuzhouHDDKitty RL Zhang/Jeff Luo2012-5-143 rd PartyAgedNeed to confirm audit scheduleWT Yang Seagate WuxiWuxiHDDKitty RL Zhang/Jeff Luo2012-5-73 rd PartyAgedNeed to confirm audit scheduleWT Yang

16. 16 EICC Audit Concerns (By Suppliers)  20 Suppliers’ Audits Aging in 6 Months SupplierLocation Previous Audit Date CommodityPerforming GCM Sourcing Exec. PrimaxDongguan2012-7-3Mice&KBAnnie Liu Steven Simplo ChangshuChangshu2012-7-9BatteryJukka SongWentao Simplo ChongqingChongqing2012-7-30BatteryJukka SongWentao TPVFuqing2012-7-5PanelIris Y ZhangWentao WDThailand2012-7-17HDDKitty RL Zhang/Jeff LuoWentao SamsungSuzhou2012-6-13MemoryAngela WangWentao ChiconySuzhou2012-12-6Power SupplyMandy XiaSteven CISWuxi2012-9-28Computer PartsCatherine Ge1 ZhouJohn G. ComlinkShenzhen2012-12-24CableRufus ZX2 DongSteven CosonicDongguan2012-10-24HeadsetSophia LiSteven GoodwayKunshan 2012-12-5 USB Port Replicator&Security Lock Evory Wu Jerry G. GrandsunShenzhen 2012-11-12 Cable Rufus ZX2 Dong Steven IVOKunshan 2012-12-24 Visual Lei Gu Wentao JMEShenzhen 2012-10-10 Mech. Mandy Xia Steven LogitechSuzhou 2012-12-12 Mice Mandy Xia/Grace Jin./ Sherman Xie Steven RamaxelHuizhou 2012-12-26 Memory Terry Ding Wentao SharetronicsDongguan 2012-9-29 Memory ？？ Wentao Shimane Sanyo(UMC)Dongguan 2012-11-26 Docks Doris Zhuo Jerry G. TINShanghai 2012-12-11 ODM XiaoQing Ma/Peizhong Zhao Steven TSSTDongguan 2012-12-5 ODD Wheeler Yan/Ocean Zhang Wentao

17. 17 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. Conflict Mineral Campaign  Conflict Mineral Campaign Kicked off in Aug. 15, 2013 (Deadline: Oct. 15, 2013) – All suppliers need complete EICC Due Diligence report as attached – Cover 95% spend suppliers (as per FY1213 spend report)  86% suppliers provide EICC Due Diligence Report to date (based on EICC Status Mater List) – Total 96/111 suppliers provide EICC due Diligence report – Total 96 suppliers spend coverage >86%(as per FY1213 spend report)

18. 18 Sustainability Status 2013 LENOVO INTERNAL. ALL RIGHTS RESERVED. EICC Audits Received AVC,Chicony Power & Jiatian 3 rd party audit report; EICC audit pipeline ‒ Lexmark: Plan to do the EICC audit in May 2013 (late to rcvd audit report) ‒ Innolux: Plan to do the EICC audit in June 2013 (late to rcvd audit report) –BOE: Plan to do the EICC audit in Aug. 2013 (Late to rcvd audit report) –Toray: Plan to do the EICC audit in Dec. 2013 –Taisol: Plan to do EICC audit in Mar. 2014 Lenovo GHG Program Total 70 suppliers(DP:66;GP:4) joined in 2013 Lenovo GHG program and reported through EICC-ON system –Supplier's’ spending coverage more than 95% –Deadline: Aug. 31, 2013 EICC Training EICC-ON training hosted by EICC & Enablon in April & May, 2013 – EICC-ON registration and Account activation –SAQ input and SAQ grant to customer EICC-ON environment report module training hosted by EICC in May 30, 2013 –How to report carbon & water emission through EICC-ON environment module EICC environmental reporting training in May, 2013 Conflict Minerals internal training in Aug, 2013 LIPC Audit LIPC Passed ISO9001 audit (April, 2013) LIPC Passed External BCP(Business Continual Plan) assessment (May, 2013) LIPC Passed CCC & CECP audit (June 2013) Internal security Audit (Aug. 29 th ~30 th ) China Environmental Labeling Audit(Aug. 22 th ~ 23 th ) LIPC Passed Green Mark Audit (Nov. 13 th ~14 th ) LIPC Passed PWC Audit (Dec. 16 th ~20 th )