Declaration of Partnership Building
Ryobi Limited hereby declares its commitment to tackling the following items as priority
initiatives to promote collaboration and ensure mutual prosperity with its business partners,
who together constitute its supply chain, as well as other like-minded corporations striving forvalue creation, with the aim of building fresh partnerships with them.
1. Mutual Prosperity for All Supply Chain Constituents and Fresh Collaboration
Transcending Differences in Corporate Size and Business Affiliation
We will strive to enhance added value delivered by the entire supply chain. To this end, throughour direct suppliers, we will reach out to their suppliers (from “Tier N” to “Tier N +1”).
Moreover, we will engage in collaboration that transcends existing transactional relationships,
differences in corporate size and other restrictions to ensure mutual prosperity with business
partners. In the course of doing so, we will also help them introduce remote working systems,
provide advice regarding the formulation of business continuity plans (BCPs) and otherwise
offer assistance to support their ongoing operations during times of disaster as well as theirefforts to promote workstyle reforms.
2. Compliance with “Promotion Standards”
We will comply with standards regarding desirable transactional practices between procuring
enterprises and subcontractors (as set forth in “Promotion Standards” stipulated by the Act on
the Promotion of Subcontracting Small and Medium-sized Enterprises) while proactively
striving to correct transactional and business practices that may hinder the development ofpartnerships with suppliers.
(1) Pricing Methods
We will not demand unreasonable reductions in prices. When determining transaction prices,
we will engage with a supplier whenever requested and hold sufficient discussions so that theresulting prices properly reflect, for example, rising labor costs and thus include appropriate
profit for said supplier. When entering into a contract to determine transactional prices or othermatters, we will present and deliver contract terms and conditions to suppliers in writing.
(2) Mold Management and Other Cost Burdens
We will engage in mold management in reference to the model agreement regarding thehandling of molds (compiled by the Ministry of Economy, Trade and Industry) and will notdemand the free-of-charge storage of molds that are no longer used for mass production.
(3) Notes and Other Payment Conditions
In principle, we will pay compensation to suppliers in cash and, when we utilize notes or otherinstruments for such payment, we will not ask suppliers to bear such costs as those associatedwith the discounting of notes. We will also endeavor to ensure that all payments are due within
60 days.

1(4) Intellectual Properties and Know-How
We will engage in transactions in conformity with the “Guidelines on Intellectual Property
Transactions” compiled by the Small and Medium Enterprise Agency. Accordingly, we will not
ask suppliers to sign unilateral secrecy agreements or otherwise abuse our transactional position
to require the disclosure of their know-how or the transfer of their intellectual property rights
without due compensation.
(5) Consideration to the Impact of Workstyle Reforms
As we aim to help our suppliers keep up with the ongoing trend toward workstyle reforms, wewill abstain from placing orders with extremely short turnarounds or requiring sudden changes
in job specifications without ourselves taking on an appropriate cost burden.
When a disaster or other emergency occurs, we will strive to avoid circumstances in which
an excessive burden is unilaterally imposed on suppliers. We will also give the utmost
consideration to the continuation and/or restoration of transactional relationships with themupon the subsequent resumption of their operations.
3. Other
We will facilitate the understanding of “Promotion Standards” among our workforce by, forexample, providing in-house training on the Ryobi Code of Conduct that governs the conductof each employee in the course of their daily operations.
Furthermore, we will promote green procurement in line with the Ryobi Group
Environmental Policy and Environmental Targets.

March 24, 2022
Akira Urakami
President and CEO, Ryobi Limited2