Declaration of Partnership Building

By reaching out to their business partners through our direct suppliers (moving from "Tier N" to "Tier N+1"), we aim to improve added value throughout the entire supply chain and build mutually beneficial relationships with our business partners through collaboration that transcends existing business relationships and company size. In doing so, we will also provide support to our business partners, such as advising them on the introduction of telework and the development of BCPs (Business Continuity Plans), from the perspective of business continuity in the event of a disaster and work style reform.

(Individual items)

1. We will work to deepen our existing businesses and create new businesses by promoting open innovation.

2. Based on the "Action Guidelines for Transitioning to Green Products," we will work with our business partners to promote efforts to reduce our environmental impact.

3. We provide support, including technical cooperation, to help our business partners maintain and improve quality and increase productivity.

We will comply with desirable business practices between parent companies and subcontractors (the "Promotion Standards" based on the Act on the Promotion of Small and Medium-Sized Enterprises in Subcontracting), and will actively work to correct business practices and trade practices that hinder the building of partnerships with our business partners.

We will not make unreasonable requests for cost reductions. When determining transaction prices, we will consult with subcontractors at least once a year and make decisions after thorough discussions that include appropriate profits for subcontractors and enable improvements in their working conditions. In doing so, we will make decisions after taking appropriate actions outlined in the "Guidelines for Price Negotiations for Appropriate Passing On of Labor Costs." Furthermore, in the event of rising raw material costs or energy costs, we aim to pass on the full amount of the appropriate cost increase. In addition, when entering into a contract, including the determination of transaction prices, we will clearly specify and provide written documents outlining the contract terms.

We will conduct mold transactions in accordance with the "Basic Concepts and Principles of Mold Transactions" and the "Memorandum of Understanding Regarding the Handling of Molds" outlined in the "Report of the Council for the Promotion of Fair Mold Transactions," promote the disposal of unnecessary molds, and refrain from requesting subcontractors to store molds free of charge.

Subcontracting fees will be paid in cash whenever possible.

We will conduct transactions based on the "basic concepts" and "contract templates" set out in the "Guidelines for Intellectual Property Transactions," and will not require the conclusion of unilateral confidentiality agreements, the disclosure of know-how by exploiting our trading position, or the free transfer of intellectual property rights.

To help our business partners adapt to work style reforms, we will not place short-term orders or sudden changes to specifications without appropriate cost burdens on subcontractors. In the event of a disaster, we will not impose unilateral burdens on subcontractors in terms of transactions, and will give as much consideration as possible to continuing business relationships when business resumes.

We share the profits and cost reductions achieved through our business activities with our business partners on a 50/50 basis.
We will not make unfair or unreasonable requests to our business partners, and we will make requests and negotiate transaction prices in a reasonable manner based on data (market rates), etc.
We will not use promissory notes and will continue to make cash payments with a payment term of 60 days or less.

November 21, 2024