S3 Recycling Solutions 2020 Annual Report

Stewardship Security Sustainability 2020 Annual Report

A Message From S3 Leadership Like our entire nation, S3 Recycling Solutions faced an extraordinarily challenging business and economic environment in 2020. However, with a laser focus on improving leadership, monitoring business metrics and managing a growing team, we were able to further our position as a leader in the electronics recycling industry.

The well-being of our customers and employees was our first priority as we navigated a historic global pandemic. We followed guidelines from public health officials and implemented procedures to ensure a safe working environment for everyone. We’re exceptionally proud of all our team members who endured unprecedented circumstances and helped S3 achieve its best year on record. We salute our employees for all their contributions to this award-winning organization.

S3 continued to help clients reduce the cost of ownership of their technology assets, and we also made internal improvements along the way. In 2020, S3 received R2 certification, the electronic recycling industry’s top credential ensuring proper processes, safety measures and documentation are followed to responsibly recycle technology assets. And Chairman Darrell S. Freeman, Sr. acquired majority ownership of the company, streamlining the organization’s decision-making and contract negotiations.

Despite the economic downturn of 2020, S3 expanded its national footprint and achieved exponential revenue and employee growth. The year closed with S3’s highest revenue benchmark ever and the company achieved 200% growth compared with last year. S3 also secured technology recycling contracts with multiple Fortune 500 corporations.

We invite you to review our 2020 annual report and continue to track our progress as we provide e-waste solutions that protect the health of our community and planet.

With a laser focus on improving leadership, monitoring business metrics and managing a growing team, we’ve furthered our position as a leader in the electronics recycling industry.

1 S3 2020 Annual Report

S3 Board of Directors As of December 2020

Darrell S. Freeman, Sr. Board Chairman S3 Recycling Solutions Executive Managing Director Zycron, Inc. a division of BG Staffing Rod McDaniel Chief Executive Officer S3 Recycling Solutions

Darrell S. Freeman, Sr. Board Chairman

Rod McDaniel Chief Executive Officer

Greg Welch Chief Financial Officer S3 Recycling Solutions Steve Boots VP Wealth Management UBS John Hopfensperger President and CEO CMK Properties, LLC Rusty McCain Secretary S3 Board of Directors John Boots VP of Finance CMK Properties, LLC

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2020 Highlights R2 Certification

New Majority Owner

ITSMF Partnership

S3 increased its organizational maturity in 2020 by receiving external credentialing. R2 certification is the electronic recycling industry’s top credential ensuring proper processes, safety measures and documentation are followed to responsibly recycle technology assets.

Darrell S. Freeman, Sr. was named chairman of the S3 board in 2016, and in 2020, he became the company’s largest shareholder.

Freeman’s business acumen and relationships have helped increase S3’s brand awareness with large

S3 became the exclusive technology recycling partner of Information Technology Senior Management Forum (ITSMF) in 2020. S3 officially assists the Atlanta-based nonprofit organization with responsibly recycling its organization’s laptops, desktops and other devices.

national and global firms.

S3 Workforce S3 added 15 jobs to the economy in the last two years, and we always make customer service a top priority.

From our drivers who regularly visit client sites for pickups, to our account managers who are on-call to assist clients, our commitment to excellent service permeates our entire organization.

Our clients’ number one point of satisfaction is that working with S3 is easy. Our staff is trained to make this process seamless and secure. We protect clients’ confidential data, follow environmental safety regulations, and use secure transportation and storage of all client devices.

Environmental, Health and Safety (EH&S) Policy S3 Recycling Solutions is committed to following industry requirements and to maintaining conformance to the requirements of our EH&S management system and scope. We are equally committed to meet or exceed our customer requirements. We will continually improve our processes and maintain compliance with relevant environmental, occupational health and safety, and data security legislation and regulations.

The goal of S3 Recycling Solutions’ operation is to have a positive impact on the environment through responsible recycling requirements that include the conservation of metals, plastic and other nonrenewable resources. Consistent with these core operations, it is S3 Recycling Solutions’ overall goal to accomplish its business objectives while meeting and exceeding the environmental and health & safety expectations of our management, employees, customers, suppliers and regulators.

We employ a “reuse, recover, dispose” hierarchy of responsible management strategies. We continually improve our systems while striving to minimize adverse impacts on the environment. We track the recycling chain, end-of-life electronic equipment, components and materials – with respect to both on-site activities and the selection of downstream vendors.

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“We value our partnership with S3 as we learn the best methods to be good stewards of the environment and maximize the return of capital to our organization through the management of processing our surplus equipment.”

David Banks

Vanderbilt University Medical Center

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S3 Recycling Solutions is a full-service technology recycling firm with an emphasis on costeffective processes for receiving, sorting, repurposing and remarketing electronic assets. We help our customers reduce the cost of ownership of their electronic technology assets, while providing a peace of mind that data security is maintained at the highest industry standards.

Since its inception in 2007, S3 has supported a diverse client base throughout the United States and Canada. S3’s vision is to combat our planet’s e-waste epidemic by employing both environmentally and financially responsible processes for a stronger, safer global community.

Industry Certifications 5 S3 2020 Annual Report

Core Competencies Information Technology Asset Disposition (ITAD) Data Destruction End-of-Life Electronics Recycling Logistics Mobility Management Onsite Hard Drive Destruction Nationwide Logistics Strategy

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Collect Equipment From Client Site

Electronic Recycling and Remarketing Process No Landfill Policy

S3’s Growth 3M Revenue Employees

25 1M

800K 13 2018

13

2019

2020

S3’s 2020 Environmental Impact

Recycling has a direct and measurable impact on the environment. In 2020, S3 processed 90,000 devices, and our recycling and reuse activity was equivalent to:

Greenhouse gas emissions avoided by:

3.3K

Garbage trucks of waste recycled instead of landfilled 7 S3 2020 Annual Report

or

15

Wind turbines running for a year

or

2.6M Incandescent lamps switched to LEDs

Secure Storage

Receiving

Testing

De-Identify, Sort, Destroy Data, Process

Remarket /Resale

As our company continues to grow, so will our positive environmental impact.

Carbon sequestered by:

1.5M Tree seedlings grown for ten years

or

90K

Acres of U.S. forests in one year

or

470

Acres of U.S. forests preserved from conversion to cropland in one year Stewardship | Security | Sustainability

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S3’s Community Impact S3 takes great care to continually give back to the community through various avenues.

2020 service activities include: Assistance To Nashville Tornado Victims In March 2020, tornadoes devastated many families in Middle Tennessee. The S3 team joined local community efforts and delivered food and water to residents who were hit the hardest.

Holiday Shopping Spree For S3 Neighbors The S3 team continued its tradition of philanthropy even during a year that presented so many challenges.

We partnered with Kiwanis of Springfield to shop for 20 families for the holiday season.

Other recent activities have included a backpack giveaway at Napier Recreation Center in Nashville, Tenn., a turkey donation for Thanksgiving in Springfield, Tenn., and a computer giveaway in partnership with the Nashville Technology Council.

“Our greatest responsibility is to care for our team members and the communities in which we are located. Giving back is the cornerstone of the S3 story.”

Rod McDaniel 9 S3 2020 Annual Report

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901 Central Ave W Springfield, TN 37172 800.320.8598 www.s3rs.com

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