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The Silver Users Association 2007 Fall Conference

Tiffany & Co.

Michael FloskisSilver Users Association

Fall Conference

November 6-7, 2007

Washington, DC

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The Silver Users Association 2007 Fall Conference

• Designer, manufacturer and retailer of fine jewelry

• Over 167 jewelry retail stores worldwide

• 2006 Revenue $2.65 Billion

• 8,900 full time employees

Tiffany & Co. Who We Are

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The Silver Users Association 2007 Fall Conference

• Trade of conflict diamonds

• Labor Rights

• Environmental issues– Cyanide is used by large mining operations to separate gold and silver

from the ore

– Large mines dump toxic water

– Abandoned mines and waste

Concerns with mining for the Jewelry Industry

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The Silver Users Association 2007 Fall Conference

Tiffany & Co. View on Sustainability

“Tiffany & Co. is committed to obtaining precious metals and gemstones in ways that are socially and environmentally responsible-it is simply the right thing to do, and our

customers expect no less”-Michael J. Kowalski, Chairman & CEO, Tiffany & Co.

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Working together with the jewelry industry and non-governmental organizations

• Leading role in working closely with:– Producers

– Other end users of precious metals

– Jewelry industry groups

– Interested non-governmental organizations

• One of the organizations that established the Framework for Responsible Mining: A Guide to Evolving Standards

www.frameworkforresponsiblemining.org

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Stance on Hard Rock Mining

• Support reform of the General Mining Law of 1872

• Support legislation to assist in cleaning up abandoned hard rock mines

• Believe that mining on our public lands is a privilege and must be carefully measured against alternative use, including recreation and conservation

• Tiffany & Co. has publicly-and-actively-opposed inappropriate mine development on environmentally and sensitive lands

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Principled Position on Burmese Gemstones

• Most of the finest specimens of rubies are mined in Myanmar (Burma)

• US government in 2003 enacted the Burmese Freedom and Democracy Act of 2003

• Technically permissible to import rubies mined in Burma but cut and polished in other countries

• Tiffany & Co. is one of the few retailers that respects both the letter and the spirit of the legislation

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Promoting Ethical Business Conduct

• A founding member of the Council for Responsible Jewellery Practices

http://www.responsiblejewellery.com/index.htm

• Founded in 2005

• Other founding members include: – Zales

– Signet Group

– Rolex, S.A.

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: A Focus on Conserving Marine Habitats

• Coral has long been used in fine jewelry

• Tiffany & Co. since 2003 refuses to use the precious resource coral in our collections

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The Silver Users Association 2007 Fall Conference

Phase I: Ensured use of only non-conflict diamondsTiffany & Co. diamonds primarily come from three geographic regions

– Canadian Arctic– Africa– Russia

• Created Laurelton Diamonds, a wholly owned subsidiary that provides rough diamonds and manages the worldwide supply chain

Phase II: Ensure use of responsibly mined metals

Tiffany & Co. Internal Actions towards Sustainability

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The Silver Users Association 2007 Fall Conference

Tiffany & Co. Internal Actions towards Sustainability

Ensure the use of precious metal from responsible sources:

• The largest portion of the gold and silver contained in Tiffany & Co. jewelry is obtained from a US copper mine which operates in a sustainable and environmentally sound manner

• Established a process to support the use and distribution of responsibly mined metals for the manufacturing of Tiffany & Co. products

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The Silver Users Association 2007 Fall Conference

Tiffany & Co. Views on Mining

• New mine development should not occur on lands of high ecological or cultural value

• Air and water contamination should be minimized

• The principle of informed community participation in mine development should be embraced

• Basic human rights should be respected by all parties

• Mine operators should provide for appropriate and fiscally sound financial guarantees to cover the costs of cleaning up and closing mines

• Mine wastes should not be placed in rivers, streams, lakes or near shore ocean water

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Responsible Metal Source Mine Process

Copper CathodeElectrolytic

Cells

Copper Liberators

Electrolyte Circulation

Filtration

Autoclave

Chlorination Leach

Lead

Recovery

Gold

Recovery

Silver

Recovery

Selenium

Recovery

Filtration

Gold Bars Selenium

Powder

Lead

Carbonate

Silver Bars

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The Silver Users Association 2007 Fall Conference

Responsible Metals: Supply Chain Flow

Responsibly Mined

Silver & Gold Tiffany & Co.

Component

Vendors

Finished Good

Vendors

Internal

Manufacturing

Tiffany & Co.

Distribution

Center

Components

Finished

Goods

Finished G

oods

Responsible

Mine

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Silver Product Process

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.: Silver Products

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The Silver Users Association 2007 Fall Conference

Tiffany & Co. Foundation

In addition to supporting education and advancement of the arts, The Tiffany & Co. Foundation focuses on several areas of environmental interest

• Responsible Mining– Supports the work of a number of nongovernmental organizations dedicated to

building a framework for responsible mining that meets industry needs for precious gemstones and metals while minimizing environmental impacts

• Coral Reef Conservation– Supports research and community-led work focused on halting the destruction of

coral reefs that result from• over-fishing

• shore development

• effects of global warming

• Land Conservation– Supports land conservation initiatives at both the national and the local level

– Especially active in supporting efforts to preserve open spaces in urban settings

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The Silver Users Association 2007 Fall Conference

Tiffany & Co.

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The Silver Users Association 2007 Fall Conference

THANK YOU

Speaker:

Michael Floskis

Director of Finance

Tiffany & Co.

300 Maple Ridge Drive

Cumberland, RI 02864

(401) 288.0101

Michael.Floskis@Tiffany.com