Partnership Building Declaration

We declare that we will focus on the following items in order to build new partnerships by promoting collaboration and coexistence and mutual prosperity with our supply chain partners and business operators who seek to create value.

1. Coexistence and mutual prosperity throughout the supply chain and new collaboration beyond scale, affiliation, etc.

By reaching out to their direct business partners through them (from "Tier N" to "Tier N+1"), we aim to increase added value throughout the entire supply chain and build a prosperous relationship with our business partners through collaboration that goes beyond existing business relationships and corporate size. In doing so, we will also provide support to our business partners, such as by offering advice on the introduction of teleworking and the formulation of business continuity plans (BCPs), from the perspective of business continuity in the event of a disaster and work style reform.
(Individual items)
○Work to create new businesses using open innovation.
○ Form teams of employees seconded from business partners and promote human resource development activities such as manufacturing reform activities.
○ Provide technical cooperation and other support to help our business partners reduce carbon emissions in their production processes.

2. Compliance with the "Promotion Standards"

We will adhere to desirable trade practices between parent companies and subcontractors (the "Promotion Standards" based on the Subcontracting Small and Medium Enterprise Promotion Act) and actively work to correct trade practices and business practices that hinder the building of partnerships with business partners. In addition, for transactions between companies other than subcontracting, we will also take note of the following points, which aim to improve fairness in transactions between companies that are in a superior or inferior position in the transaction. ①Price determination method We will not make unreasonable requests for cost reductions. When determining the price of a transaction, if a subcontractor requests it, we will hold a full discussion to ensure that the subcontractor's profits are fair, taking into account the impact of increases in labor costs. When entering into a contract, including determining the price of a transaction, the parent company will clearly state and provide the terms of the contract in writing.
② Cost burden for mold management, etc. We will conduct mold transactions based on a contract template, promote the disposal of unnecessary molds, and will not request subcontractors to store molds free of charge.
③ Payment terms for bills, etc. Subcontractors will be paid in cash whenever possible. If payment is made by bill, discounts, etc. will not be borne by the subcontractor, and payment terms will be made within 60 days.
④ Intellectual Property and Know-How We will conduct transactions based on guidelines and contract templates 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.
⑤ Impact of work style reform, etc. In order to enable business partners to respond to work style reform, we will not place short-term orders or make sudden changes to specifications without appropriate cost burdens on subcontractors. In the event of a disaster, etc., 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, etc.

3. Other

○ We will share profits gained through business activities, cost reductions, and other benefits with our business partners on a 50/50 basis.
○ We will thoroughly educate employees to instill the principles in them by having them recite the principles at daily morning meetings so that they can make decisions and act based on the Basic Purchasing Policy.
○ We will conduct a "Supplier Satisfaction Survey" every year to build long-term relationships of trust with our suppliers and improve transactions based on the survey results.
○We will work to abolish the use of promissory notes and transition to cash payments and electronically recorded claims.

September 7, 2023
FatheR
Representative: Shosaku Kanaya