Declaration of Partnership Building

We declare that in order to build new partnerships through cooperation, co-existence and mutual prosperity with our supply chain business partners and other value-creating suppliers, we will make concerted efforts to be proactive about the following items.

We will work to add value to the supply chain as a whole by working through our direct business partners to their partners beyond them (from "Tier N" to "Tier N+1"), aiming to build co-existence and mutual prosperity with these parties through collaboration that transcends factors such as existing business relationships and corporate scale. In doing so, we will also support our business partners from the perspective of work style reforms and business continuity during disasters, such as by advising them on the introduction of work-from-home and the development of business continuity plans (BCPs).

(Individual Items)
For each of the four items in our "YKK Group Environmental Vision 2050," namely, "Responding to climate change," "Utilization of resources," "Sustainable use of water," and "Symbiosis with nature," we are identifying and specifying key issues in YKK AP's Environmental Policy and reflecting them in our environmental action plan, taking into account our future projections and vision for 2050. As such, we will work with our business partners to implement various measures aimed at becoming greener.

We will adhere to sound trade practices between main subcontracting enterprises and subcontractors (the "Promotion Standards" established under the Act on the Promotion of Subcontracting Small and Medium-sized Enterprises) and actively work to correct trade and commercial practices that hinder the establishment of partnerships with our business partners.

We will not make unreasonable requests to subcontractors for cost reductions. In determining the price to be paid for a transaction, we will consult with subcontractors at least once a year, and will make decisions after sufficient discussion so as to include appropriate benefits for the subcontractor and to enable the improvement of working conditions at the subcontractor. Such decisions will be made after properly undertaking the actions set forth in the "Price Negotiation Guidelines for Appropriate Pass-through of Rising Labor Costs." Furthermore, in the event of a sharp rise in the costs of raw materials or energy, we will aim to pass on the increased costs in an appropriate manner. In concluding contracts, including determining the transaction price, we will clearly state the terms and conditions thereof in writing or similar means and deliver such documentation to the subcontractor.

We will conduct die transactions in accordance with the "Basic Ideas and Principles for Die Transactions" and the "Memorandum on Handling of Dies" set forth in the "Report of the Council for the Promotion of Appropriate Die Management," encourage the disposal of dies that are no longer needed, and will not request subcontractors to store them free of charge.

We pay subcontract proceeds in cash whenever possible. When payment is made in notes, we will ensure that the subcontractor does not bear the discount on notes and work toward ensuring usance at 60 days after sight.

Our transactions will be conducted in accordance with the Basic Principles and the Model Contract set forth in the Guidelines for Intellectual Property Transactions, and we will not seek to conclude one-sided confidentiality agreements, disclose expertise by taking advantage of our superior bargaining position, or transfer intellectual property rights without compensation.

To ensure that our business partners are also able to adapt to work style reforms, we will not place orders with short delivery times or make sudden changes in specifications without bearing the appropriate costs. In the event of a disaster or other emergency, we will not impose a one-sided burden on subcontractors in relation to business transactions, and after business resumes, we will give the utmost consideration to the maintenance of business relationships.