SAFT BORDEAUX MANAGEMENT SYSTEM MANUAL

OUR OPERATIONS

OUR ACTIVITIES

OUR COMMITMENT

SAFT BORDEAUX – MANAGEMENT

SYSTEM MANUAL

The range of our management system

The scope of our management system

Bordeaux site Contact Details

111-113, boulevard Alfred Daney, 33074 Bordeaux Cedex

www.saftbatteries.com 033 (0)5.57.10.64.00

033 (0)5.57.10.66.70 N° de SIRET: 383 703 873 000 83

The management system includes company activities which lead to the manufacturing of products and services that correspond with the set requirements. This is namely, the sales, marketing, design, development, industrialization, production and the aftersales service of Ni-Cd, Ni-MH and Li-ion technology cells and batteries.

No exceptions have been identified, although Saft Bordeaux may request either partially or fully outsourced services. These activities however remain managed within the system.

The scope of the Management System covers the Bordeaux site (Plant, System development unit (SDU) and Li-Ion development), (with the exception of the research department and the Support & Services Unit), and activities which take place at the Bagnolet site (sales and marketing).

OUR ACTIVITIES

The Saft Group

The World Class Program of Saft Group

Saft is a French company which was established in 1918. It is today the leading designer, developer and global producer of high technology batteries for industrial and defense applications.

The Saft head office is located in Bagnolet (France). The group has 15 manufacturing sites, presence in 18 countries, a global workforce of approximately 4000 employees and a sales network which is recognised throughout the world.

The group is structured around two divisions (SBG and IBG) providing a broad market for variety of applications.

Divisions of Saft

Saft implements best practices in all fields by applying proven principles of rigour and performance. Saft has brought together its performance and quality improvement methods to create a global program calledSaft World Class, which has been implemented in all Saft sites and in all departments including development, production, support and administration.

OUR ACTIVITIES

Industrial Battery Group (IBG) Division

IBG Site locations

IBG Quality Policy

Using the appropriate technology, Saft Industrial Battery Group (Bordeaux and

Bagnolet sites) is committed to satisfying our customers with error free

solutions, products and services… on time, every time.

The policy includes a commitment to continuous improvement and meeting

regulatory and legal requirements

The Industrial Battery Group (IBG) division is internationally recognized as the leading designer, developer and manufacturer of nickel based battery solutions for industrial and transportation sectors. In addition to this, IBG uses the most advanced technology to develop lithium-ion batteries (Li-ion) for both emerging and traditional business sectors.

As an industrial Battery Group (IBG) institution, Saft Bordeaux is committed to promoting the IBG quality policy.

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OUR ACTIVITIES

The Saft Bordeaux Site

Set up in 1949, the Bordeaux site today has approximately 550 employees and incorporates the IBG division, extending across almost eight acres of land. The Bordeaux site is home to the design and manufacture of several different electrical cell technologies which are used to make different types of Nickel - Cadmium (Ni-Cd), Nickel metal hydride (Ni-MH) and Lithium-ion (Li-ion) batteries as well as integrated battery systems.

The diagram below shows the main workshops and various departments of Saft Bordeaux.

Production Activities 4- Ni-Cd(FINEC) Active

Strips

5- Ni-Cd Cells and batteries 6- Ni-MH Cells and

batteries 7- Li-ion Cells 8- Li-ion Batteries Development Activities

1- Ni-Cd batteries and cells 2- Li-ion cells

3- Battery Systems (SDU)

Company Support activities 9- Overall Management, IT department,

Finance department, Purchasing department

10- Industrialization department, Quality and World Class departments. 11- Sales Administration and Logistic

departments

12- Human Resources, Environment and Security departments

13- Maintenance Department. 14- Saft Group Research Center

OUR ACTIVITIES

Saft Bordeaux Organizational Chart

Saft Bordeaux Operations, Markets and Applications

The Bordeaux site includes the design, development and manufacturing departments of several types of cells that are used to make Nickel - Cadmium (Ni-Cd), Nickel metal hydride (Ni-MH) and Lithium-ion (Li-ion) battery systems for transportation and stationary markets.

OUR COMMITMENTS

Saft Bordeaux – Management Commitment

Quality in Everyday Life: Our motto

We are all working towards the same objective of providing total satisfaction to

both our internal and external stakeholders, whilst at the same time improving our

own performance!

The Saft Bordeaux plant designs, develops, manufactures and provides an after-sales service for

Nickel Cadmium, Nickel metal hydride and Lithium-Ion electrical cells and batteries. These cells

and batteries are aimed at the Aviation, space, railway, industry, telecommunications, and

mobility.

Here at Saft, we produce very high-technology products and so lasting and total customer

satisfaction is one of our main objectives. For this reason, we must ensure that our products and

services are of high quality and that they are checked in accordance with the legal and regulatory

requirements in order to win and maintain the trust of our customers.

For this to happen, quality must go beyond the design stage and instead become a state of mind;

for everybody. By working together, we can improve company performance also satisfy the ever

growing needs of our customers.

Safety is at the heart of our commitment to the products we provide. This begins at the design

stage through use of correct tools and continues to providing support by ensuring for example

correct training is given for the maintenance of products.

The management team requires the participation and adherence of everyone in order to meet

these stated objectives, and to enable them to implement and maintain an efficient quality

management system.

We are committed to using all available resources and necessary means in order to implement

and distribute our policy and quality objectives.

For a system of quality management to be effective it must also constantly evolve and adapt.

Therefore, we also ensure the continuous improvement of our quality management system.

Daniel Charbonnel Bordeaux Site Director

OUR OPERATIONS

Process Mapping of Saft Bordeaux

Continuous improvement and Control

The Saft Bordeaux Management system consists of three types of processes. A full description of each process is given, which specifies the objectives, the means of monitoring and measuring performance, authority and responsibility and mains activities. Link between process and associated documents are also specified.

A correlation table ensures the control of documents and records for each process.

Each process is led by someone whose task it is to facilitate the process and maintain the desired level of performance in agreement with both the general strategy of Saft and the quality policy.

The system benefits from a continuous improvement program which is run using information which is collected outside of the company for example by listening carefully to customers and stakeholders as well as taking note of all feedback.

OUR OPERATIONS

Processes which make up our system

Our management system is made up of linked and coherent processes which add value to our products, helping to satisfy the needs of our stakeholders.

The fundamental processes are processes that combine and coordinate innovation, development, execution and sales to customers they allow:

PC1 Define solutions and develop benchmark sales bids: Develop markets, determine benchmark sales and ensure their competitiveness;

PC2Promotion and sales of solutions and networks: Canvass, sell and provide support to customers.

PC3 develop and industrialize new solutions: To structure various tasks which lead to the discovery of complete solutions which meet the needs of the market and the Saft strategy and that allow the industrial implementation (industrialization, infrastructure and resources).

PC4 supply chain management: Deliver products to customers which comply with their needs in terms of quality, cost and time whilst ensuring it benefits us. Innovation and development is fulfilled and it allows us to reduce inventory at all levels, improving flexibility and response and allowing us to produce at full capacity.

PC5 Support and service management (out of perimeter): to implement all of the tools and activities designed to acquire analyze and process the after-sales requests of customers in an attempt to retain them by offering them the best service.

TheManagement Processincludes:

PM1 Management, implementation and monitoring of strategic plans; Budget decisions and monitoring:Working towards the future by implementing company policies and strategies in order to achieve the objectives and sustainability of the company whilst at the same time respecting the specified budget

PM2 Continuous improvement of management: regular evaluations of business operations, particularly those concerning the continuous improvement of the management of major company failures ensuring that we learn from these mistakes in order to avoid them happening again.

PM3 Human Resource Management and development of individual and group skills: To make sure that the needs of both Saft employees and the company are met in terms of strategic choices, Saft social policy and current regulations both now and in the future.

PM4 Risk Management of the company: Be aware of and minimize the risk of faults, accidents and major incidents in order to ensure the safety and reliability of our products, in accordance with regulatory requirements and the Saft group.

PM1 PM2 PM3 PM4 PC3 PC4 PC5 PS1 PS2 PS3 PC1 PC2

PM1 Give the direction x x x x x x x x x

PM2 Continuously improve our

control level x x x x x x x x x

PM3 manage the Human resource and develop the individual and collective competencies

x x x x x x x x x

PM4 Manage the risks of the

enterprise x x x x x x x x

PC3 Develop and Industrialize new

solutions x x x x x x x x x x x

PC4 Ensure the supply chain x x x x x x x x x

PC5 Ensure the after-sales service x x x x x x x x x

PS1 Optimize the energy and

hardware resources x x x x x x x x x

PS2 Monitor the suppliers and develop the partners with the suppliers

x x x x x x x x x

PS3 Control itsinformation x x x x x x x x

PC1Define the solutions and

design the standard sales offers x PC2 Promote and sell solutions and

systems x x x

LEGEND X LinkedProcess X Interactive Process

OUR OPERATIONS

Processes which make up our system

The Support processPermitting:

PS1 optimization of equipment and energy resources: to ensure continuity (maintenance, supply of fluids, Metrology), and maintain the image of the company.

PS2 Identify, assess, monitor and develop partnerships with suppliers: Evaluation of the operational and financial results of our products, managing the performance of our suppliers adapting ourselves to cultural differences which exist between different suppliers.

PS4 Information management: Allow those involved in the management system access to relevant data processing tools and documents to ensure they can successfully complete projects Control of rules relating to the management and accessibility of data.

OUR OPERATIONS

Site Governance

The site governance is organized by

 An internal organizational hierarchy which is outlined using organizational charts which show the different management, departments, projects

 a functional organization described by the quality management system under the form of related and/or interactive processes and procedures described in the table of correspondence.

The diagram below shows the meetings which punctuate important information and decision making by ensuring transparency, respect for Saft ethics, acknowledging the interests of different stakeholders. The various meetings are listed in the table of governance.

The strict and legal business framework for Saft Bordeaux provides a functional structure which corresponds with departments belonging to the Saft group particularly for the staff and data management and marketing and sales departments.

So-called interface procedures are written between Saft Bordeaux and some of its partners to optimize operations between departments working together. Procedures are co-approved and they provide some functional rules whilst harmonizing the respective management systems tools.

1 :Environment and Quality process 2 : Production and Organization Manual 3 :Agreed economy Operator

DOCUMENTATION

STRUCTURE

Documentation Structure

The guidelines of the Quality Management System are organized in accordance with the structure shown in the diagram below. Access to the Quality Management system documentation is provided to the staff at Saft Bordeaux through the distribution of documents or via the intrasaft quality site. The table of correspondence refers to the enforceable procedures for each process.

The Quality Management system documents can be accessed on the site by customers and/or regulatory authorities.

The Bordeaux site takes responsibility for its procedures, documents and records, following its own rules. The Quality Management system must also meet the requirements of the following quality standards:

 PART 21 for the production of batteries for Civil Aviation (EASA [European Aviation Safety Agency] requirement).

 Part 145 for the maintenance of batteries intended for Civil Aviation (EASA requirement)

 EN 9100 for batteries intended for civil aviation, space, military and defense.

 IRIS [International Railways Industry Standard] for batteries intended for use in the railway market. These specific requirements are defined and/or taken into account in specific standards

PM1 PM2 PM3 PM4

• NS 1001901

Responsibility of management

• NS 1001119Organization

Manual for Production (MOP) • NS 1001150 Maintenance Organization Manual (MOE) • NS 1001004Management manual

•PS-002 Control the

non-conformitiies •PS-004 Corrective preventive and improvement actions •PS-001 Internal Audit •PS-003 Customer Claim management • NS 1001918 Human resource Procedure • NS 1001097 Follow up approving authority • NS 1001042Internal Agreement PC0/PC1 PC2/PC3 PC4 PC5 • 1001932Interface agreement : Bagnolet Company • Sales Manuals •NS 1001904Design Control

•SDU Process Mapping

•NS 1001927

industrialization

•NS 1001937Testing Lab

•NS 1001954Agreement

interface SDU/ Bordeaux Plant •NS 1001942 Inspection of first article •NS 10015XX and NS 10016XX Design operation procedure • NS 1001910Production Monitoring • NS 1001908Identification and traceability of products • NS 1001915Delivery, Preservation, Packing, Storage and handling

• NS 1001023Shopping and Storage • NS 1002023Reception Control • NS 10020XX, NS 10030XX, NS 10040XX, NS 10050XX and NS 10060XX, FI, PLAN

• After-sales Internet site

• NS 1001944Reliability,

maintainability, availability, security

• NS 1001948 Cost of

ownership for railway batteries

• NS 1001085Commercial

documentation

PS1 PS2 PS3

• PO-001 Test equipments

• PO-007 Maintenance • PO-008 Identification et classification of critical equipments • PG-007 Purchase • NS 1001945Business Transfer • Suppliers Relationship manual • PS-006Control of documents • NS 1001916 Control of Records • NS 1001054Product File change • NS 1001052industrial composition File

DOCUMENTATION

STRUCTURE

UPPER(S) DOCUMENT(S)

Identification Title

LOWER(S) DOCUMENT(S)

Identification Title

LIST OF REVIEW

Function Name / SURNAME

Quality Site Manager Patrick SANCHEZ

Quality System Manager Hélène GRIMAUD

LIST OF APPROBATION

Function Name / SURNAME

Bordeaux Site Director Daniel CHARBONNEL

REASON OF EVOLUTION Evolution

N# version Justification of the modifications Modified pages

14-027 aj  Support & Services unit - Processes PC5 – Out of

perimeter

1, 8, 9

 Saft & IBG results updated 2, 3

 Saft Bordeaux organization chart updated. 5

 Processes cartography updated 7

13-041 ai - Lithium-ion development unit, Support & Services

unit and EV Unit added 1, 2, 3, 5

- Modification of processes cartography and

processes operating 7, 8, 9

- Modification of document chart 11