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Transparency in Supply Chains

California Transparency in Supply Chains Act

STATEMENT REQUIRED BY CALIFORNIA TRANSPARENCY IN SUPPLY CHAINS ACT OF 2010
Effective Date:  January 1, 2012

The California Transparency in Supply Chains Act of 2010 (the “Act”) became effective on January 1, 2012. This law requires certain manufacturers and retailers doing business in the State of California to disclose information regarding their efforts to eradicate slavery and human trafficking from their direct supply chains. In its effort to supply products free from the taint of slavery and human trafficking, NetScout will take the following steps to manage its direct supply chains responsibilities:

  1. NetScout will evaluate its supply chain for human trafficking and slavery risks by requiring that all of its direct vendors certify annually that they comply with all laws regarding slavery and human trafficking in the countries in which they do business. NetScout does not employ a third party for verification.
  2. NetScout does not perform, or use third parties to perform audits of our suppliers to evaluate supplier compliance with laws and standards regarding slavery and human trafficking. We will, however, consider audits or third-party verifications for direct suppliers if we determine they are of high risk.
  3. NetScout will require that its direct suppliers certify that materials incorporated into their products comply with the laws regarding slavery and human trafficking in the countries in which they are doing business.
  4. NetScout supply chain personnel will be required to obtain the above certifications from our direct suppliers. NetScout may terminate suppliers for failure to comply with laws and standards regarding slavery and human trafficking. NetScout personnel who fail to obtain the above certifications from NetScout’s direct suppliers may face internal disciplinary measures.
  5. NetScout will provide training regarding the eradication of slavery and human trafficking to NetScout employees and management who have direct responsibility for supply chain management.

UK Modern Slavery Act

UK MODERN SLAVERY ACT 2015 ANNUAL SLAVERY AND HUMAN TRAFFICKING STATEMENT
Effective Date: January 25, 2017

Introduction.

The UK Modern Slavery Act 2015 (the “Act”) became effective on October 29, 2015. Section 54 of the Act requires that any organization which: (a) is engaged in commercial operations in any sector; (b) has a minimum turnover of GBP 36M; and (c) has a demonstrable business presence in the UK, must produce a slavery and human trafficking statement for each fiscal year of the organization.

The statement must include “the steps the organization has taken during the financial year to ensure that slavery and human trafficking is not taking place in any of its supply chains and in any part of its own business.”

NetScout’s Group Structure, Business, and Supply Chains.

NetScout Systems, Inc. (together with its subsidiaries, “NetScout” or the “Company”) designs, develops, manufactures (or contracts to manufacture), markets, licenses, sells, and supports application and network performance management and service assurance solutions focused on assuring service delivery quality, performance, and availability for large, demanding, and complex internet protocol (IP) based service delivery environments. The Company manufactures, or contracts to manufacture, and markets these products in integrated hardware and software solutions that are used by commercial enterprises, large governmental agencies, and telecommunication service providers worldwide.

The Company has taken the view that Section 54 of the Act applies to the Company through its own commercial operations and the commercial operations of its various subsidiary entities that have a demonstrable business presence in the United Kingdom. In addition to the Company, the following six (6) subsidiaries of the Company (the “UK Entities”) meet the relevant criteria outlined in Section 54 of the Act and are, therefore, required to publish a slavery and human trafficking statement: Arbor Networks UK Ltd., Cragen Limited, NetScout Systems (UK) Limited, NetScout Systems A.C. UK Limited, NetScout Systems UK Holdings Ltd., and Psytechnics Limited. On the basis that it appropriately covers the relevant steps and applies sufficiently to all businesses concerned, the Company has decided to produce this Statement on behalf of both itself and the UK Entities. For the remainder of this Statement, where the context permits, references to the “Company” and “NetScout” should be read as including the UK Entities.

On July 14, 2015, the Company completed the acquisition of the Communications Business (“Communications Business”) of Danaher Corporation (“Danaher”), which included certain assets, liabilities, technology, and employees within Tektronix Communications, VSS Monitoring, Arbor Networks, and certain portions of Fluke Networks Enterprise business, but which excluded Danaher’s data communications cable installation business and its communications service provider business. This statement covers the commercial operations of the Communications Business since July 14, 2015.

Inherent limitations underlie the due diligence behind this Statement. The Company’s supply chain is complex, and there are many third parties in the supply chain between the ultimate manufacture and/or assembly of NetScout products and the original sources of materials, components, and parts. In the effort to ensure that slavery and human trafficking is not taking place in any of its supply chains the Company must therefore rely on information provided by its suppliers. Such information may be incorrect, incomplete, or subject to other irregularities beyond the Company’s control.

The Company’s Due Diligence Processes in Relation to Slavery and HumanTrafficking

NetScout conducts its own business in compliance with applicable laws regarding slavery and human trafficking in the countries in which we conduct our business.

In its efforts to supply products free from the taint of slavery and human trafficking, NetScout will take the following steps to manage its direct supply chain responsibilities:

  1. NetScout evaluates its supply chain for human trafficking and slavery risks by requiring that all of its direct vendors certify annually that they comply with all laws regarding slavery and human trafficking in the countries in which they do business. NetScout does not employ a third party for verification.
  2. NetScout does not perform, or use third parties to perform, audits of our suppliers to evaluate supplier compliance with laws and standards regarding slavery and human trafficking. We will, however, consider audits or third party verifications for direct suppliers if we determine they are of high risk.
  3. NetScout requires that its direct suppliers certify that materials incorporated into their products comply with the laws regarding slavery and human trafficking in the countries in which they are doing business.
  4. NetScout supply chain personnel are required to obtain the above certifications from our direct suppliers. NetScout may terminate suppliers for failure to comply with laws and standards regarding slavery and human trafficking. NetScout personnel who fail to obtain the above certifications from NetScout’s direct suppliers may face internal disciplinary measures.
Key Modern Slavery Risk Areas, Assessment and Mitigation

NetScout is not aware of any key modern slavery or human trafficking risk areas in its supply chain or those of its UK subsidiaries.

Training for Relevant Personnel

NetScout provides training regarding the eradication of slavery and human trafficking to NetScout employees and management who have direct responsibility for supply chain management.

Measurement of Compliance and Effectiveness

The Company intends to continue to refine, revise, and improve the steps by which it attempts to ensure that slavery and human trafficking is not taking place in any of its supply chains and in any part of its own business.

The Company’s Other Applicable Policies in Relation to Slavery and Human Trafficking

The Company’s statement required under the California Transparency in Supply Chains Act of 2010 can be accessed at www.netscout.com. NetScout’s Conflict Minerals Reports for the calendar years 2013, 2014, and 2015 can be found at www.netscout.com.

Board Approval

This Statement was approved by vote of the Company’s Board of Directors on January 25, 2017, and by the respective Board of Directors of the UK Entities on or about the same date.

Anil Singhal
Chairman, President and Chief Executive Officer