Update Status October 2014

Environmental StatementReport Environmental Protection and Safety

Schaeffler Winsted 2014

Introduction

In the year 2013 the environmental management at Winsted Precision Ball has been reviewed

according to the actual EMAS III regulation and the environmental statement 2012 has been

confirmed. The present actualized environmental statement, referring to the requirements of the

EMAS III (regulation (EC) Nr. 1221 /2009), is integral part of the environmental statement 2013 and

describes the relevant changes, the development of key performance indicators as well as the

status of environmental objectives and targets of the plant.

Changes at the Location

In 2013 Winsted Precision Ball upgraded the software for the Steyr gage in the Quality

Department. Which replaced obsolete equipment.

Winsted also purchased a new Laser Microscope for the Quality Department which allow the site

to calibrate the master balls in house.

Our AchievementsEnvironmental Goals Environmental Program Achieved? Actions

Safety >> Conduct GHS Training All employees received intro training 10/18/13

Safety >> Back to Safety Basics Monthly safety training for all employees

Energy >> Reduction of Lighting 85 % Complete

Goal has been achieved. Part of goal has been achieved. Additional actions planned. Goal not achieved.

Objectives and Targets

PlanningEnvironmental Goals Environmental Program Responsible Completion

Security >> Replace 15 analog cameras with 18 digital cameras to align with Schaeffler security requirements

W. Jarvis 2014

Energy >> Replace workstation light bulbs with LED bulbs in Ceramics and Small Ball Lap

F. Nenninger 2014

Safety >> Change format on conducting safety surveys. Increase time spent in each area

Plant Engineering 2014

Key Indicators according EMAS III Schaeffler Winsted Precision Ball

Absolute Relative*

Database 2011 2012 2013 2011 2012 2013Reference data

Added value in Mio. Euro [Mio] 3.00 3.00 3.00

General Data

Total headcount [MA] 59.0 59.0 54.0

Size of property [m2] 80,734 80,734 80,734

Total sealed surface [m2] 16,343 16,343 16,343 5,448 5,448 5,448 [m2 / Mio €]

Biodiversity [%] 4.94 4.94 4.94

InputWater [m3] 1,325 1,088 1,483 442 363 494 [m3 / Mio €]

Electricity ∑ [kWh] 1,740,920 1,627,200 1,823,040 580,307 607,680 [kWh / Mio €]

>> Amount of electricity from renew­able energy (only external supply) [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Anteil Eigenerzeugung (konventionell) [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Amount of electricity generated inhouse from renewable energy [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Percentage of renewable energy with regard to overall consumption [%] 0.00 0.00

Natural gas [kWh] 1,222,932 865,633 1,547,518 407,644 288,544 515,839 [kWh / Mio €]

>> Amount from renewable energies [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Percentage of renewable energies [%] 0.00 0.00 0.00

Light fuel oil [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Amount from renewable energies [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Percentage of renewable energies [%] 0.00 0.00 0.00

Fuels for internal logistics

Diesel [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Amount from renewable energies [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Percentage of renewable energies [%] 0.00 0.00 0.00

Gasoline [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Amount from renewable energies [l] 0.00 0.00 0.00 0.00 0.00 0.00 [l / Mio €]

>> Percentage of renewable energies [%] 5,00 0.00 0.00

District heating [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Amount from renewable energies [kWh] 0.00 0.00 0.00 0.00 0.00 0.00 [kWh / Mio €]

>> Percentage of renewable energies [%] 0.00 0.00 0.00

Propane / LPG [kg] 60.0 57.0 60.0 20.0 19.0 20.0 [kg / Mio €]

Methanol [kg] 0.00 0.00 0.00 0.00 0.00 0.00 [kg / Mio €]

Energy input ∑ [kWh] 2,607,287 3,371,331 869,096 1,123,777 [kWh / Mio €]

>> Amount of renewable energy with regard to total energy input [kWh] [kWh / Mio €]

>> Percentage of renewable energy with regard to total energy input [%]

Absolute Relative*

Database 2011 2012 2013 2011 2012 2013Emulsion concentrates [kg] 6,662 7,495 5,830 2,221 2,498 1,943 [kg / Mio €]

Processing oils [kg] 102,091 174,490 105,623 34,030 58,163 35,208 [kg / Mio €]

Solvent - VOC [kg] [kg / Mio €]

Solvent - Non-VOC [kg] [kg / Mio €]

Metal raw materials [t] 61.0 44.0 43.0 20.0 15.0 14.0 [t / Mio €]

Metal semi finished products(external supply) [kg] 0.00 0.00 0.00 0.00 0.00 0.00 [kg / Mio €]

Other raw materials [kg] 10,257 7,722 9,151 3,419 2,574 3,050 [kg / Mio €]

OutputWaste ∑ [t] 209 225 205 70.0 75.0 68.0 [t / Mio €]

non hazardous waste ∑ [t] 165 172 169 56.33 57.33 56.33 [t / Mio €]

>> paper, cardboard [t] 17.0 5.00 3.00 5.67 1.67 1.00 [t / Mio €]

>> waste wood [t] 0.00 0.00 0.00 0.00 0.00 0.00 [t / Mio €]

>> domestic waste [t] 34.0 25.0 14.0 11.33 8.33 4.67 [t / Mio €]

>> others [t] 118 142 152 39.33 47.33 50.67 [t / Mio €]

hazardous waste ∑ [t] 10.0 14.0 15.0 3.00 5.00 5.00 [t / Mio €]

>> grinding swarf / sludge [t] 0.00 0.00 0.00 0.00 0.00 0.00 [t / Mio €]

>> waste emulsion [t] 0.00 0.00 0.00 0.00 0.00 0.00 [t / Mio €]

>> waste oil [t] 2.00 3.00 1.00 0.67 1.00 0.33 [t / Mio €]

>> others [t] 8.00 11.0 14.0 [t / Mio €]

Scrap (ferrous + non-ferrous) ∑ [t] 30.0 39.0 21.0 10.0 13.0 7.00 [t / Mio €]

CO2-equivalents ∑ [t] 247 175 312 82.0 58.0 104 [t / Mio €]

>> CO2­emissions from combustion processes at this site [t] 247 175 312 82.0 58.0 104 [t / Mio €]

>> CO2­emissions from electricity obtained from external sources [t] 0.00 0.00 0.00 0.00 0.00 0.00 [t / Mio €]

>> CO2­emission factor per kWh electricity obtained from external sources [g / kWh] 450 450 450

>> CO2­emissions from district heating obtained from external sources [t] 0.00 0.00 0.00 0.00 0.00 0.00 [t / Mio €]

>> CO2­equivalent from the refrigerant agent amounts refilled due to leakages [kg] 846,175 931,975 599,724 282,058 310,658 199,908 [kg / Mio €]

SO2 - emissions from combustion processes at the site [kg] 2.00 2.00 3.00 0.70 0.50 0.90 [kg / Mio €]

NOx - emissions from combustionprocesses at the site [kg] 106 75.0 134 35.0 25.0 45.0 [kg / Mio €]

Particulate mater emissions ∑ [kg] 0.00 0.00 0.00 0.04 0.03 0.06 [kg / Mio €]

>> from combustion processes at the site [kg] 0.00 0.00 0.00 0.04 0.03 0.06 [kg / Mio €]

>> from production an other processes [kg] 0.00 0.00 0.00 0.00 0.00 0.00 [kg / Mio €]

VOC-emissions [kg] 0.00 0.00 0.00 0.00 0.00 0.00 [kg / Mio €]

* In relation to added valueSources for evaluation of emission factors are the ProBas data bank (http://www.probas.umweltbundesamt.de ­ status: September 22nd, 2011) as well as the GEMIS 4.8 data bank (http://www.oeko.de/service/gemis/).

Input Notes on selected key performance indicators

Electricity Consumption Electrical consumption has gone up from 2012 to 2013

because we produced more product.

2012 kWh /Value added = 580.307 [kWh / Mio. €]

2013 kWh /Value added = 607.680 [kWh / Mio. €]

Natural Gas Consumption Natural gas consumption has gone up from 2012

to 2013 because our internal furnace was put back

online.

It is the number one consumer of natural gas for WPB.

Water Consumption Water consumption has sone up from 2012 to 2013

because we changed our central coolant system twice

in 2013.

[MWh] Electricity

2.000

1.800

1.600

1.400

2011 2012 2013

Electricity [MWh]

[MWh] Natural Gas

2.000

1.500

1.000

500

0

2011 2012 2013

Natural Gas [MWh]

[m3] Water

2.000.000

1.500.000

1.000.000

500.000

0

2011 2012 2013

Water [m3]

Output Notes on selected key performance indicators

Non­Hazardous Waste Non­Hazardous Waste has decreased in 2013 because

of process changes requiring less non­hazardous waste

products to be used.

Hazardous Waste Hazardous waste has increased over the past two

years due to the dismantling of the waste water treat­

ment system.

Scrap Metal Scrap increase in 2012 was due to reduction in

inventory. Winsted Precision Ball’s scrap is removed to

a reputable scrap dealer where metal is recycled.

[Tons] Non­Hazardous Waste

175

170

165

160

2011 2012 2013

Non­Hazardous Waste [Tons]

[Tons] Scrap Metal

60

40

20

0

2011 2012 2013

Scrap Metal [Tons]

[Tons] Hazardous Waste

20

10

0

2011 2012 2013

Hazardous Waste [Tons]

Questions about environmental protection Questions about environmental protection and and safety at the location: safety at Schaeffler: Schaeffler Canada Inc.

Daren Roth Norbert Hörauf P.O.Box 640 Industriestraße 1­3 Stratford, ON. Canada N5A 6T2 91074 Herzogenaurach

Internet www.fag.com Internet www.schaeffler.com E­Mail daren.roth@schaeffler.com E­Mail Norbert.Hoerauf@Schaeffler.com

Canada: In Germany: Phone 519 2713231 Phone 09132 822058 Fax 519 2738528 Fax 09132 82452058

From other countries: From other countries: Phone +011 519 2713231 Phone +49 9132 822058 Fax +011 519 2738528 Fax +49 9132 82452058

The structure and contents of this report correspond to the requirements stated in Annex IV of Regulation (EC) No. 1221 /2009 of the European Parliament and the Council dated November 25, 2009 regarding the voluntary participation of organizations in the eco­management and audit scheme (EMAS).

Moreover, the report contains information about issues pertaining to occupational safety, plant security and fire protection as well as general information on social benefits pr ovided by the company and this location.

© Schaeffler Technologies AG & Co. KG · 2014, September This publication or parts there of may not be reproduced without our permission.

Environmental Verifier’s Statement

The undersigned, Dipl.­Phys. Reinhard Mirz, EMAS Environmental Verifier, registration number DE­V­0260, accredited and authorized for the area designated by NACE Code 25 and 29.32, confirms that his inspection of the site at 159 Colebrook River Road Winsted, CT USA has met all of the requirements stipulated by Regulation (EC) No. 1221 /2009 of the European Parliament and Council dated November 25, 2009 on the voluntary participation of organizations in an environmental management and audit scheme (EMAS) as indicated in the updated environmental statement (report entitled “Environmental Protection and Occupational Safety”) of by Winsted Precision Ball, registration number D­158­00016.

The signatures at the end of this statement confirm that>> The inspection and validation have been completed in full agreement with the requirements

stipulated in (EU) Regulation No. 1221 /2009>> The result of the inspection and validation confirms that no evidence of non­compliance with valid

environmental specifications has been found>> The data and information in the environmental statement (report entitled „Environmental Protection

and Occupational Safety“) for the site at 159 Colebrook River Road Winsted, CT USA, as part of Winsted Precision Ball represent a reliable, credible and true picture of all activities at this site within the area indicated in the environmental statement.

This statement cannot be equated to an EMAS registration. EMAS registration can be completed only by an authorized agency in accordance with Regulation (EC) No. 1221 /2009. This statement must not be used as an independent basis for informing the public.

Dipl.­Phys. Reinhard Mirz Done at Winsted, on 07/09/2014

The next consolidated (entire) Environmental Statement will be submitted for validation in October / 2015 at the latest.In the years between, an annual update of the Environmental Statement will be compiled for validation by the environmental verifier.

Imp

ress

um

:

Her

ausg

eber

:S

iem

ens

AG

KS

pA

-/G

Sp

A-B

üro

, Erl

ang

en

Au

tore

n:

Dr.

Rai

ner

Sie

g, J

elen

a M

aric

Au

flag

e:6.

akt

ual

isie

rte

Au

flag

e

Bis

her

ers

chie

nen

eA

ufl

agen

:1.

Au

flag

e;M

ärz

1998

;3.

000

Stü

ck2.

Au

flag

e;M

ai19

99;

3.00

0 S

tück

3. A

ufl

age;

Jun

i20

03;

3.00

0 S

tück

4. A

ufl

age;

Jan

uar

2006

;1.

000

Stü

ck5.

Au

flag

e;O

kto

ber

2007

;O

rdn

erfo

rm6.

Au

flag

e;M

ai

2008

;O

rdn

erfo

rm

Ges

amth

erst

ellu

ng

:

Imp

ress

um

:

Her

ausg

eber

:S

iem

ens

AG

KS

pA

-/G

Sp

A-B

üro

, Erl

ang

en

Au

tore

n:

Dr.

Rai

ner

Sie

g, J

elen

a M

aric

Au

flag

e:6.

akt

ual

isie

rte

Au

flag

e

Bis

her

ers

chie

nen

eA

ufl

agen

:1.

Au

flag

e;M

ärz

1998

;3.

000

Stü

ck2.

Au

flag

e;M

ai19

99;

3.00

0 S

tück

3. A

ufl

age;

Jun

i20

03;

3.00

0 S

tück

4. A

ufl

age;

Jan

uar

2006

;1.

000

Stü

ck5.

Au

flag

e;O

kto

ber

2007

;O

rdn

erfo

rm6.

Au

flag

e;M

ai

2008

;O

rdn

erfo

rm

Ges

amth

erst

ellu

ng

: