PHILLIPS 66 BUSINESS PARTNER PRINCIPLES OF CONDUCT. Doing the right thing always. Phillips66.com

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1 PHILLIPS 66 BUSINESS PARTNER PRINCIPLES OF CONDUCT Doing the right thing always. Phillips66.com

2 1 BUSINESS PARTNER PRINCIPLES OF CONDUCT At Phillips 66, we take great pride in providing energy and improving lives, and we never compromise our integrity in the process. We should strive to ensure that every decision we make is ethical and reflects our values of safety, honor and commitment. Chairman and CEO Greg Garland

3 BUSINESS PARTNER PRINCIPLES OF CONDUCT 2 OUR COMPANY VALUES At Phillips 66, our employees share a vision to provide energy and improve lives. Our company is built on three core values: SAFETY. We protect each other, our environment and our communities. HONOR. We stand behind our word, and you can count on us to do the right thing, always. COMMITMENT. We are inspired to achieve the highest levels of performance in everything we do. Our vision Providing Energy, Improving Lives and our values Safety, Honor and Commitment embody Phillips 66 s approach to corporate responsibility and the people whose lives we touch. Putting our values into practice creates lasting benefits for all our fellow business partners, employees, customers, suppliers and shareholders, as well as the communities where we live and work.

4 3 BUSINESS PARTNER PRINCIPLES OF CONDUCT Our Commitment to the Highest Standards Phillips 66 and its subsidiaries (together, Phillips 66 ) are committed to upholding our global reputation as a company with the highest standards of business ethics and conduct. Our Code of Business Ethics and Conduct summarizes these standards and, along with our core values of safety, honor and commitment, help create the foundation for our Global Compliance and Ethics Program. As a condition of employment, every Phillips 66 employee s personal responsibilities include: Complying with all applicable laws and regulations. Complying with all applicable company policies. Maintaining appropriate ethical behavior. Reporting any suspected misconduct, illegal activity, fraud, abuse of company assets or other violation of ethical standards. Annually submitting an ethics compliance certification. We are committed to the highest ethical standards because we want people in our communities and elsewhere to know they can count on us. This commitment flows naturally from our responsibilities to our shareholders, customers, families, vendors and suppliers, the communities where we live and work, and each other. In support of this commitment, our Global Compliance and Ethics Program was established to help: I am proud of our unwavering focus on acting with integrity, day in and day out. Our continued success and admired reputation reflect not only the quality of our work but also our commitment to compliance. Greg Garland Ensure adherence with applicable laws and the highest ethical standards. Protect and preserve the company s reputation. Prevent criminal and civil liability. Set the tone for an ethical work environment.

5 BUSINESS PARTNER PRINCIPLES OF CONDUCT 4 We strive to choose business partners objectively and fairly, and to act with honesty in all business dealings with them, avoiding conflicts of interest and other improper or unethical behavior. In turn, Phillips 66 business partners are expected to work with Phillips 66 employees in a way that allows employees to uphold the standards as outlined in our Code of Business Ethics and Conduct. We consider supplier and business partner diversity to be a critical factor in achieving our goal of sustainable partnerships in the communities where we live and operate. partners, their employees, contractors, and third-party agents, collectively comply with all applicable laws and regulations impacting their business together. Business partners that enter into contracts with Phillips 66 are not only expected to comply with contractual obligations, but also with the principles of conduct set out in this Business Partner Principles of Conduct. Please contact the Phillips 66 employee you work with or the Phillips 66 Global Compliance and Ethics Office if you have questions about these Principles of Conduct or the associated expectations. The ever-changing and demanding global regulatory environment requires that Phillips 66, along with its business Business partners are encouraged and expected to conduct themselves in an honest and professional manner at all times.

6 5 BUSINESS PARTNER PRINCIPLES OF CONDUCT PROMOTING AN ETHICAL WORK ENVIRONMENT With respect to business conducted with or on behalf of Phillips 66, we expect that our business partners will comply with all applicable laws and: Fair Employment Practices Observe all applicable laws and regulations governing wages, hours, recruiting and employment practices, and prohibit unlawful discrimination, harassment and retaliation against their employees. Health, Safety and Environment Conduct their operations in a manner that does not jeopardize the safety or healthy work environment of their employees, and provide workplaces that meet all applicable environmental, health and safety laws, regulations and directives. Human Rights Not employ workers younger than sixteen (16) years of age or below the minimum employment age in the applicable jurisdiction; properly disclose the use of any conflict minerals contained in any products supplied to Phillips 66; not hold any person in slavery or servitude or use forced or indentured labor; and not engage in human trafficking. Anti-Corruption Not, directly or indirectly through another party, knowingly offer, make, promise, authorize, or receive anything of value to or from government officials or private individuals with the intention of improperly influencing the recipient in order to obtain or retain business for Phillips 66 or secure an improper business advantage on behalf of Phillips 66. Anti-Trust/Anti-Competition Not unlawfully share any prices, costs or similar competitively sensitive information; collude with any third party; or otherwise violate anti-trust or competition laws involving any proposed, pending or current Phillips 66 business or contracts. Conflicts of Interest/Gifts, Entertainment and Travel Not offer to, provide to, or accept from Phillips 66 employees, contractors or business agents, extravagant or excessive gifts, entertainment or travel, and business partners will not offer to, provide to, or accept from other parties on behalf of Phillips 66, extravagant or excessive gifts, entertainment or travel. Import and Export Controls, Customs Compliance Comply with all applicable import, export, re-export, and transfer control laws and regulations for goods, services, software, technology or technical data that may be bought, sold, or exchanged between Phillips 66 and its business partner, including any restrictions on access or use, and not transship through, or source from (directly or indirectly) any country, company, individual or group, or for any enduse that is prohibited under applicable export or sanction laws.

7 BUSINESS PARTNER PRINCIPLES OF CONDUCT 6 Intellectual Property/Data Privacy and Security Respect the copyrights, trademarks, patents and intellectual property rights of Phillips 66 and other parties by using proprietary information, property and rights only for the purposes for which they are intended and approved for use; not transfer any technical or confidential information to any third party without the express, written permission of the owner; not use confidential material nonpublic information related to Phillips 66 business to trade or tip others to trade on that information; take all appropriate steps to safeguard personal and private data, maintain the confidentiality of proprietary information and prevent its accidental destruction, alteration, modification, loss, misuse, or unlawful use or processing; and comply with all applicable legal requirements in cross-border data transfers. Financial Reporting Maintain books and records that accurately and completely reflect all transactions involving Phillips 66 (including contracts, invoices, expense reports, customs and export documentation, and the like), and provide that information to Phillips 66, its auditors, advisors and regulatory/government authorities, where required. Government Business Fully comply with all applicable federal, state or local procurement laws in those situations where the business partner supports a Phillips 66 contract with a governmental entity. The expectations outlined in these Principles of Conduct are intended to supplement the terms and conditions of any contract between Phillips 66 and its business partners. If any conflict exists between these Principles of Conduct and the terms and conditions of any contract between Phillips 66 and its business partners, the terms and conditions of the contract shall control. Phillips 66 Company Global Compliance and Ethics Office Subject to local laws and any legal restrictions on such reporting, any Phillips 66 business partner that has an ethics concern is expected to promptly notify the Phillips 66 Company Global Compliance and Ethics Office of those concerns, regardless of whether the concern involves the business partner. Business partners are also expected to cooperate with Phillips 66 if we or our advisors are investigating any ethics matter involving the business partner. You can contact the Global Compliance and Ethics Office directly or anonymously through the Phillips 66 Ethics HelpLine. Direct Contact: Regular Mail: Phillips 66 Global Ethics Office 2331 CityWest Blvd. Houston, TX Phillips 66 Ethics HelpLine: File a report online. Telephone: (within U.S. or Canada), or outside the U.S. and Canada, click here.

8 ABOUT PHILLIPS 66 Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company s master limited partnership, is an integral asset in the portfolio. Headquartered in Houston, the company has 14,000 employees committed to safety and operating excellence. Phillips 66 had $50 billion of assets as of June 30, For more information, visit or follow us on 2016 Phillips 66 Company. All rights reserved. CM

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