A snapshot of a company's safety record at a single point in time offers a limited understanding of that company's safety performance. It is therefore useful to view the trends in a company's safety record over time. As you can see from the graph below, both Genentech's IIR and DART have been declining over the past four years (the timeline for which we have the most accurate data). This means that accidents, both moderate and severe, are happening less and less frequently. For details on how Genentech achieved these improvements in safety performance, see "Behind the Numbers" below.

It is also illuminating to compare a company's safety statistics against other companies with similar risk profiles. Genentech generally compares IIR against two sources:

• The national average for the biological pharmaceutical products manufacturing industry (NAICS Code 325414), compiled by the U.S. Bureau of Labor Statistics (BLS); and
• The average of a select pool of industry peers ("Peers," in the graph below) with whom Genentech coordinates closely on safety improvements.

The graph below shows that Genentech's IIR is better than the national average for the biological pharmaceutical products manufacturing industry and that our IIR has recently dipped slightly below the average of our pool of industry peers.

Behind the Numbers Over the years, Genentech has introduced a number of new processes and programs to improve our safety performance. Our improving safety performance validates the effectiveness of our efforts to provide a safe workplace for our employees. Some of our recent safety initiatives include:

• Involving employees directly in annual safety symposiums and employee-led Safety Improvement Teams;
• Conducting job hazard analyses to understand and mitigate the risks associated with different work activities;
• Regularly inspecting work areas for potential hazards and resolving those hazards that are identified;
• Considering safety in the design of new facilities; and
• Developing corporate standards on safety and auditing against these standards.