FINAL
Modern Slavery Statement for financial year ending 31 March 2017

Modern Slavery Statement
As a company whose mission is to create transformational technology as a force for good,Arm welcomes the requirements of Section 54 of the UK Modern Slavery Act 2015. The
transparency that the Act seeks to encourage is in line with the way we operate at Arm as
reflected by our Code of Business Conduct and Ethics and our company culture.
About Arm
Arm is a world leading supplr of semiconductor intellectual property (IP). We design energyefficient processors and related technologies to deliver the intelligence in applications rangingfrom sensors to servers, including smartphones, tablets, enterprise infrastructure and theInternet of Things (IoT). We are headquartered in Cambridge UK and now part of the SoftBank
Group Corp (SBG).

Arm-based chips
shipped in 2016

People and expertise

4,852

17.7bnFull time employees

inArm-based chips

40 offices 19 countries

Profitsin£312m

R&D investment

IFRS EBIT

Licenses signed

£349m

1,442

Invested in research anddevelopment (normalized)

Cumulative licenses signed

Patents

Technology collaboration

4,500

8,500

Patents owned or pending

Revenue

Engineers and industry experts
attended Arm’s annual technology
conferences and symposia$1,689m
Revenue in 2016

(Figures as of March 2017)

Our Values and Policies
At Arm, Corporate Responsibility is underpinned by a number of policies:❖ Our Code of Business Conduct and Ethics
The Arm Code of Business Conduct and Ethics (Conduct Code) is the foundation of how
we interact with all our stakeholders. All directors and employees are required to act
fairly, honestly and with integrity and to demonstrate on an annual basis that they
have read and understand Arm’s Conduct Code.

FINALThe Conduct Code governs how we provide full, understandable, and accurate content
in our public disclosures as well as complete compliance with all applicable laws andregulations. Our corporate policies aim to prevent sponsorship of illegal activities
including those that violate equal opportunity and discrimination laws and bestpractice.
❖ Our Supplier Code of Conduct
Arm’s Supplier Code of Conduct (Supplier Code) describes our corporate responsibility
requirements from suppliers that provide products or services to Arm and its
subsidiaries. Arm requires suppliers and their employees to commit to this Code as acondition of doing business.
❖ Human Rights
Arm has signed the Universal Declaration of Human Rights and we have integrated
relevant human rights principles into our policies for employees and contractors. Our
Human Rights Policy is incorporated in our Conduct Code. This is in addition to related
existing policies including those on business ethics and discrimination.
Arm participates in the UN Global Compact (UNGC), which asks companies to embrace,
support and enact within their sphere of influence a set of core values in the areas of humanrights, labour standards, the environment and anti-corruption.
We are also a member of UNGC LEAD. LEAD is a group of 50 multinationals that have beenchosen out of the 10,000 UNGC members because of their history of engagement with theUN and commitment to corporate responsibility. We are represented on both the Global
Compact LEAD and UK network’s advisory board, keeping us in touch with our peers andinforming us on how we can contribute to sustainability in our immediate operations, ourecosystem and beyond. As a LEAD company, we submit an annual Communication onProgress against the 21 advanced criteria that support the ten Global Compact principles. The
advanced criteria include sections on human rights, elimination of forced and compulsory
labour, abolition of child labour and the elimination of discrimination. For details of ourreporting on these areas, please see the Corporate Responsibility Report Supplement
https://www.arm.com/company/corporate-responsibility/read-our-reports
Arm has been a supporter of the UK Living Wage Campaign since 2015. The Living Wage is avoluntary higher rate of base pay (based on the cost of living) which we, as an accredited
Living Wage Employer, have committed to paying all our direct employees as a minimum.
Our Supply Chain: Assessing and Managing Risk
In 2016, we spent around £200 million on goods and services essential to the smooth
operation of our global business (approximately 17% of turnover).
As an IP company, we do not have an extensive supply chain of raw materials coming into thebusiness. As a result, our associated risks are low. We do, however, purchase a wide range ofgoods and services from a large number of suppliers who are distributed globally. Theseinclude the businesses that supply the IT infrastructure and services to support our globally
distributed development teams, the facilities and building maintenance required to safely andFINAL

securely provide for our rapidly growing workforce, and the global consulting, accounting andlegal services from the hundreds of smaller suppliers who enable us to operate effectively.
We attach great importance to the supply side of our value chain.
In 2014, we added requirements relating to responsible labour practices into our standard
supplier Terms of Business. These referred to the requirement that suppliers respect andpromote the rights set out in the International Labour Organisation’s International (ILO)
Labour Standards and the provisions of the United Nations’ Universal Declaration of Human
Rights in relation to both its personnel and its suppliers. All new suppliers created as repeat
vendors in our financial systems (i.e. excluding one-off payments) are required to agree tothe responsible labour practices requirement within the Responsible Business section of thestandard Arm Terms of Business.
Since 2015, we have been operating against our Supplier Code (or an acceptable equivalent).
The Supplier Code sets out our key expectations of our Suppliers. In relation to EmploymentStandards, these are:Child labour
We are opposed to the use of any form of child labour or practices that inhibit thedevelopment of children. Suppliers must comply with all child labour laws andshould not employ anyone under the age of 15, or where it is higher, the mandatory
school leaving age in the local country.
Forced or involuntary labour
Suppliers must not participate in human trafficking; use forced, involuntary, or slave
labour; or purchase materials or services from companies using forced, involuntary,or slave labour. They must be able to certify that materials included in their products
comply with the slavery and human trafficking laws of the country or countries inwhich they do business.
Compensation and working hours
Suppliers must comply with the applicable wage and hour labour laws andregulations governing employee compensation and working hours. Suppliers should
conduct operations in ways that limit overtime to a level that ensures a humane andproductive work environment.
Diversity and equality
Suppliers should aim to provide equality of opportunity and treatment regardless ofrace, colour, gender, religion, nationality, sexual orientation, age, or disability.
Suppliers are expected to support equal pay for work of equal value. Suppliers must
oppose discrimination or intimidation towards employees including all forms or
threats of physical and psychological abuse.
For more information on our Supplier Code of Conduct, please go tohttps://www.arm.com/company/policies/suppliers
Further, we expect our suppliers to:

FINAL---

implement or maintain, as applicable, a management system that facilitatescompliance with the Supplier Code and with the law, and identifies and mitigatesrelated operational risks while facilitating continuous improvement.
have a process to communicate the Supplier Code requirements to next-tiersuppliers and to monitor their compliance to the Supplier Code and all applicablelaws and regulations.
assist us in enforcing the Supplier Code by communicating its principles to theirsupervisors, employees, and suppliers.

The Supplier Code includes the details of a whistle-blower hotline for confidential reportingof violations of the Supplier Code.
Next StepsAs we grow, we continue to be vigilant and actively consider steps that we can take to mitigate
risks in all compliance areas, including eradicating modern slavery and human trafficking.
We have taken steps to improve our understanding of supplier performance in human rights
assessment. We have plans to improve data collection and reporting to monitor supplierperformance in this area and related aspects.
For instance, as a Living Wage Employer, we will be adding to
our Supplier Code of Conduct the expectation that suppliers
meet national level salary standards as a minimum and bestpractice standard as a preference. For the UK specifically, weare considering adding a question into our terms and conditions
about compliance with the Living Wage.
We are also currently looking to align our processes to ISO
20400, the new (voluntary) standard for Sustainable
Procurement which includes metrics such as Transparency,
Ethical Behaviour, Respect for the rule of law and international
norms of behaviour and Respect for Human Rights.

“[Living Wage Employer] isa good example of how weare moving to integratesocial and environmental
considerations into ourevaluation of suppliers andserves to communicate themessage and influence
practice.” Julie Robinson,
Procurement Director atArm

The Arm Board of Directors approved this statement on 29
January 2018.
Please direct any questions on this statement to Carolyn Herzog, General Counsel and Chief
Compliance Officer at legalethics@arm.com