Declaration of Partnership Building and Establishment of a Consultation Service for Business Partners

1. Coexistence and mutual prosperity across the entire supply chain, and new collaborations that transcend size, affiliation, etc.

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.

• We are working to improve logistics productivity and reduce _CO2 emissions through environmentally friendly services such as modal shift, collaborative logistics, and round-trip use.
• We aim to optimize our business partners' supply chains on a global scale and provide safe and high-quality logistics services.

2. Compliance with the "Promotion Standards"

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.

1. Pricing method
   We will not make unreasonable requests for cost reductions. When determining transaction prices, we will engage in discussions with subcontractors upon their request, taking into account the impact of increased labor costs and ensuring that the price includes the subcontractor's fair interests. When entering into a contract, including the determination of transaction prices, the principal contractor will clearly specify and provide the contract terms in writing.
2. Payment terms such as promissory notes
   Subcontracting fees will be paid in cash whenever possible. If payment is made by promissory note, the subcontractor will not be charged any discount fees, and in the future, we will strive to shorten the payment period to within 60 days.
3. Intellectual property and know-how
   We do not require the conclusion of one-sided confidentiality agreements, the disclosure of know-how by taking advantage of our business relationship, or the free transfer of intellectual property rights.
4. The repercussions of work style reforms, etc.
   To enable our business partners to adapt to work style reforms, we will not place orders with short deadlines or sudden specification changes with subcontractors without ensuring they bear appropriate costs. In times of disaster, we will not impose unilateral burdens on subcontractors, and when business resumes, we will give as much consideration as possible to continuing business relationships.

3. Guidelines on price negotiations for the appropriate transfer of labor costs

In order to ensure the sustainable development of our business by establishing fair pricing through appropriate price adjustments across the entire supply chain, we will focus on the following matters when negotiating prices with our business partners regarding the passing on of labor costs.

1. We will hold regular discussions with our business partners.
   We will hold a meeting at least once a year to discuss the passing on of labor costs.
2. When requesting explanations or documents from business partners, they must be publicly available.
   When requesting supporting documents from business partners regarding increases in labor costs, these documents must be based on publicly available information and must have reasonable grounds.
3. We will ensure appropriate price increases across the entire supply chain.
   We are mindful that our direct business partners are in a position to ensure fair transactions with their subcontractors, and we will assess the reasonableness of the amount requested by our business partners.
4. We will discuss the matter with our business partners on a case-by-case basis if requested.
   In addition to regularly scheduled discussions, we also provide opportunities for dialogue upon request from our business partners.
5. We will propose price increases as needed.
   In price negotiations, if there are any unclear points regarding the method of calculating the requested amount with the business partner, we will provide advice to the business partner as needed.
6. We will create a record of negotiations with our business partners and share it with both parties.
   To prevent misunderstandings during price negotiations with our business partners, we create negotiation records, confirm them with each other, and keep them on file.

4. Others

• We have already issued a "Voluntary Action Declaration" regarding "White Logistics."
• We will not make unfair or unreasonable requests to our business partners, and will make requests and negotiate transaction prices in a reasonable manner based on data (market rates), etc.

October 12, 2022
(Updated on January 26, 2024)