Supplier Certification Know Your Supplier (KYS)

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Corporate Compliance & Anti-Illicit Trade Corporate Compliance Supplier Certification Know Your Supplier (KYS) Overview for External Users November 2012

Know Your Supplier (KYS) Purpose In line with JTI s Code of Conduct and recognized International standards, JTI runs a Know Your Supplier (KYS) program for all key suppliers. It provides a framework for assuring that our supply chain is free from association with illicit trade and specifies our standards in terms of business integrity, equal opportunities, fair employment, health and safety and the environment. This commitment is also reflected in the Cooperation Agreement JTI signed with the European Union and its 27 Member States in December 2007. It is important to select and retain suppliers who have values and business standards similar to JTI s. To this end, suppliers are selected objectively and impartially, rated on various factors, including integrity, quality, performance, commercial terms and commitment to safety, as well as environmental protection. JTI Code of Conduct, p.17 KYS Supplier Certification 2

Certification Process The certification process identifies through a KYS questionnaire completed on the JTI KYS online portal, whether the business standards required by JTI are met. The KYS program process is as follows: Bidding or negotiation (Start of KYS certification) Contract (Finalization of KYS certification) Start of business Certification Process A. Initiation C. Renewal B. Result After being certified for 12 months, information will need to be updated on the KYS portal. KYS Supplier Certification 3

Guiding Principles The supplier certification process identifies whether the supplier meets the business standards required by JTI Certification is required for all new or existing suppliers In the case of group companies, the mother company needs to be certified The certification process does NOT identify whether the suppliers products and services are suitable to meet a specific JTI business need The certification process does NOT affect existing qualification procedures, at this stage. KYS Supplier Certification 4

Supplier Certification Process JTI initiates certification Supplier completes the self assessment questionnaire JTI reviews answers and certifies the supplier or not In order to be certified, suppliers have to complete an online self assessment questionnaire accessible by invitation only. KYS Supplier Certification 5

Getting Started Information Security and Confidentiality In order to proceed with the online questionnaire, you will be requested to read and accept the Terms of Use of this portal. When you have accepted the Terms of Use, you will be brought to a hyperlinked document which contains details of the technical measures implemented to ensure that your data, as entrusted to JTI, is adequately protected and secured. KYS Supplier Certification 6

Access and Login The internet address for accessing the KYS portal is kys.jti.com Your browser will complete this to https://kys.jti.com/xcitec/web/login/ You have to enter your login and password information at the login page and click on the Login button to access the Know Your Supplier application. The application will display an error message, if the account information entered is wrong. KYS Supplier Certification 7

Forgot Password The Forgot Password routing allows you to request a new password for an existing user account. You have to enter your login information into the Login field and click on the Send new password button to request a new password. You can return to the Login page where you can enter your login and your new password by clicking on the Back to the login page button. KYS Supplier Certification 8

Home Page You will be automatically forwarded to the homepage of the Know Your Supplier application after a successful login. The navigation menu is shown on the left of this page. The homepage displays all the supplier certification questionnaires that you have been invited to complete. You can open a questionnaire by clicking on the corresponding title. KYS Supplier Certification 9

Supplier Certification Questionnaire The online questionnaire enables suppliers to present their company and upload the documents required to become a JTI certified supplier. Each section of the questionnaire is supported with extracts from JTI s Code of Conduct which provide examples of the practices that are expected to meet JTI s standards. KYS Supplier Certification 10

Supplier Certification Questionnaire The various chapters of the questionnaire are displayed on the left hand side and the content is displayed on the right. You can navigate through the chapters by clicking on their title. Active chapters are highlighted. The icon next to the title of the chapter indicates the level of completeness. The different icons are explained as follows: White question mark: This chapter contains non-mandatory questions which have not been answered yet Yellow exclamation mark: This chapter contains mandatory questions which have not been answered yet Green check mark: All questions in this chapter have been answered KYS Supplier Certification 11

Mandatory Questions The supplier certification questionnaire contains mandatory and non-mandatory questions. Mandatory fields are marked with an asterisk and you have to answer all of these questions before you can release the questionnaire. The Know your Supplier application will display a notification at the top of the screen when you try to release or print a questionnaire without having filled in all the mandatory answers. The notification will list all unanswered mandatory questions. You can jump directly to the corresponding section by clicking on the link. The unanswered questions in the section are highlighted in red. KYS Supplier Certification 12

Company Documentation In order to support the information you provide us with via the online questionnaire, the following company documents will be requested from you (if available): Official Company Registration Code of Conduct Licenses and/or permits to conduct business (e.g. tobacco permits) Full name and nationality of the company owners Documents can be uploaded in the following formats: *.jpg, *.doc, *.docx, *.ppt, *.pptx, *.xls, *.xlsx and *.pdf. KYS Supplier Certification 13

Step 1 Introduction The questionnaire is split into six sections You will be required to complete all the mandatory questions. Your answers will be kept in the JTI supplier database - subject to data protection laws and regulations. You will need to accept the Terms of Use in order to progress through the questionnaire. KYS Supplier Certification 14

Step 2 General Company Information This section will require you to provide us with information related to the legal nature of your company as well as its corporate structure. Any certificates of registration as well as quality certifications should be scanned and uploaded. Please scroll down to see all the questions in this section. KYS Supplier Certification 15

Step 3 Contact Information Please provide us with the name and contact information of the person or persons in your company who are responsible for the business relationship with JTI. This can include several people with different responsibilities. Please scroll down to see all the questions in this section. KYS Supplier Certification 16

Step 4 Financial Information This section will help us to understand the financials of your company as well as your geographical presence around the world. If available, we would like to see your latest annual report. Please scroll down to see all the questions in this section. KYS Supplier Certification 17

Step 5 Products, Services & Fulfillment What are the products or services you want to supply to JTI? What is your business type? Please tell us about your subcontractors, if you use them. Please scroll down to see all the questions in this section. KYS Supplier Certification 18

Step 6 Corporate Responsibility & Compliance Extracts from JTI s Code of Conduct will explain some of our standards and expectations from our employees and business partners. Please upload a copy of your own Code of Conduct, if available. Please scroll down to see all the questions in this section. KYS Supplier Certification 19

Save & Release You are automatically forwarded to the Save & Release page after clicking on the button Done at the bottom of the screen. The Save & Release page offers three different options to choose from: Save and Exit: saves the changes to the questionnaire. Release the questionnaire: saves the changes and submits the questionnaire to JTI. You will not be able to edit the questionnaire any more. Print: prints the questionnaire. Please note that all mandatory questions have to be answered before you can release the questionnaire. KYS Supplier Certification 20

Logout You are automatically forwarded to the Logout page after clicking on the button Logout in the navigation area or at the bottom of the questionnaire. The Logout page offers three different options to choose from: Save and logout: saves the changes to the supplier certification questionnaire and proceeds with the logout. Logout without saving: discards all unsaved changes to the questionnaire and proceeds with the logout Cancel: cancels the logout and returns to the questionnaire. KYS Supplier Certification 21

Next Steps Supplier Monitoring Supplier Certification Supplier Approval Once you have completed and submitted the online questionnaire, we will review your answers and confirm your certification via email. Your answers will be kept in the JTI supplier database and will be subject to data protection laws and regulations. Depending on the services or products supplied by you, we may need to request more information. We will notify you by email if this is the case. Additional information can also be gathered via an on-site audit. JTI Certified Supplier If you satisfy JTI s requirements, you will then be classified as a certified supplier. KYS Supplier Certification 22

Contact Information For any inquiries regarding the process, the use of the tool or any other concerns, please get in touch with your usual business contact at JTI. KYS Supplier Certification 23

Thank you

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