Declaration of Partnership Building
Harima Chemicals Group hereby declares commitment to the following undertakings inorder to continue to build strong ties with our supply chain partners and value-creating
businesses, through mutually beneficial collaboration.
1. Mutually beneficial collaboration with existing and potential business
partners across the supply chain, beyond scale or affiliation, etc.
We enhance added value throughout the supply chain by encouraging our direct
partners to collaborate with their own business partners (from “Tier N” to “TierN+1”), and continue to promote mutually beneficial collaboration with existing andpotential partners, beyond scale or affiliation. To this end, we also offer assistancein implementing telework systems and other workstyle reforms, as well as
establishing business continuation plans that improve resilience during disasters
and other emergencies.
(Details)
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Digitalize business processes and assist with IT system implementation

Promote fair and equitable practices in the supply chain, in line with “Harima
Chemicals Group Procurement Guidelines”

Jointly conduct activities and provide knowhow related to employee healthmanagement and health promotion initiatives

2. Compliance with promotion standards
We adhere to desirable trading practices between main subcontracting enterprises
and subcontracting businesses ("Promotion Standards" in accordance with the Act
on the Promotion of Subcontracting Small and Medium-sized Enterprises), andactively rectify practices that hinder our partnerships.
① Pricing methods
We refrain from making unreasonable demands on our subcontractors to lower
prices. We consult subcontractors at least once a year when determining
transaction prices, taking into consideration subcontractor requests toaccommodate increased labor costs so that prices include appropriate profit
margins. In making such decisions, we take appropriate action as set forth in
the Guidelines on Price Negotiations for Appropriate Shifting of Labor Costs. Inthe event of significant increases in raw material or energy prices, we aim toreflect related costs in transaction prices. When entering into contracts thatdetermine transaction prices, we address and specify relevant terms andconditions in writing.
② Payment terms
We pay subcontracting fees in cash whenever possible. When fees are paidthrough draft, we account for additional fees and pay invoices within 60 days.
③ Intellectual property and knowhow
We adhere to the Guidelines for Intellectual Property Transactions, and refrainfrom enforcing one-sided nondisclosure agreements, taking advantage of ourposition to seek disclosure of knowhow or demand transfer of intellectual
property rights without compensation.
④ Consideration for workstyle reforms
To encourage workstyle reforms at subcontractor businesses, we do not placeorders with unreasonable delivery times or change specifications on short
notice without appropriate compensation. In the event of a disaster or otheremergency, we refrain from imposing unfair burdens on subcontractors and,upon resumption of operations, maintain business relationships to the extent
possible.
3. Other
We continue to work in close collaboration with our worldwide suppliers andconduct operations with the highest integrity and consideration for people, society
and the environment, in line with “Harima Chemicals Group Procurement
Guidelines”, as well as international laws and regulations.

August 21, 2024
Yoshihiro Hasegawa
President
Harima Chemicals Group, Inc.