Our company declares our commitment to building new partnerships by promoting collaboration and mutual prosperity with our supply chain partners and value-creating businesses. To achieve this, we will focus on the following initiatives:

1. Mutual Prosperity Across the Supply Chain and New Collaborations Beyond Scale and Corporate Groups
By reaching out to downstream supply chain partners (“Tier N+1”) through direct business partners (“Tier N”), we will strive to enhance value across the entire supply chain.
Additionally, through collaborations beyond existing business relationships, corporate scales, and affiliations, we aim to achieve mutual prosperity with our partners.
In this process, we will provide support for initiatives such as introducing telework and formulating business continuity plans (BCPs) for our business partners, particularly in times of disaster or under workstyle reforms.

Specific Initiatives:
a. Business collaboration (open innovation, M&A support, business succession assistance, etc.)
b. IT implementation support (common EDI development, data sharing, IT talent development, cybersecurity measures, etc.)
c. Matching of specialized personnel
d. Green initiatives (joint development of decarbonization technologies, energy-saving consultation, decarbonization of production processes, green procurement, etc.)
e. Health management initiatives (providing expertise on health management, joint implementation of health promotion measures, etc.)

2. Compliance with the “Promotion Standards”
We will comply with the fair business practices outlined in the “Promotion Standards” under the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises.
We will actively address and correct any business practices or commercial habits that hinder partnership building with our business partners.

Key Points:
① Price Determination
We will not make unreasonable requests for cost reductions.
When determining transaction prices, we will conduct discussions with subcontractors at least once a year. The transaction prices will include appropriate profits for subcontractors, ensuring they can improve labor conditions.
Contracts, including transaction prices, will be clearly indicated and provided in writing.
Price negotiations will be conducted following the guidelines outlined in the “Guidelines for Price Negotiation for Proper Labor Cost Transfer.” Specifically, we will accept the transfer of increased labor costs into transaction prices as a principle. Additionally, when material costs or energy costs rise significantly, we will aim to fully pass on the increased costs.
② Cost Burden for Mold Management, etc.
We will conduct mold transactions based on the “Basic Principles and Fundamental Ideas of Mold Transactions” outlined in the “Report of the Mold Transaction Rationalization Promotion Council” and the “Memorandum on Mold Handling.”
We will promote the disposal of unnecessary molds and will not request free storage of molds from subcontractors.
③ Payment Terms for Bills, etc.
We will pay subcontracting fees in cash whenever possible.
If payments are made via bills, we will ensure that discount fees are not borne by subcontractors and will strive to set payment terms within 60 days.
④ Intellectual Property and Know-how
We will conduct transactions based on the “Basic Principles” and “Contract Templates” outlined in the “Guidelines on Intellectual Property Transactions.”
We will not demand one-sided confidentiality agreements, disclosure of know-how, or free transfers of intellectual property rights by leveraging our business position.
⑤ Burden from Workstyle Reforms, etc.
To ensure our subcontractors can adapt to workstyle reforms, we will not impose short lead times or sudden specification changes without appropriate cost burdens.
In the event of disasters, we will avoid imposing unilateral burdens on subcontractors. When resuming operations, we will make every effort to maintain business relationships.