Basic Policy on Procurement

The procurement activities of the LY Corporation Group, comprised of LY Corporation and its consolidated subsidiaries and affiliates, are based on the following polices.

Basic Policy on Procurement

1.Compliance with Laws and Regulations

We do not participate in purchasing that infringes the rights, such as intellectual property rights, of third parties. We also comply with the Subcontract Act, the Antimonopoly Act, and all other relevant laws.

2.Offering Fair Opportunities for Competition

Information on purchasing transactions is disclosed in a timely and appropriate manner. Along with offering fair opportunities for competition to all domestic and international business partners and suppliers wishing to engage in the transactions, we refrain from relying too heavily on specific business partners and suppliers or reciprocal buying arrangements.

3.Rational Selection of Business Partners and Suppliers

In principle, we obtain proposals and quotes from multiple business partners and suppliers. Our selection is based on clear and rational criteria, including quality, price, delivery date, stability of supply, and reliability.

4.Rejection of relationships with antisocial forces

As stipulated in our "Basic Policy on Antisocial Forces," we reject all transactions with business partners or suppliers that have relationships with antisocial forces.

5.Building Mutual Trust

By prioritizing communication with our business partners and suppliers, we do not neglect our efforts to build relationships of mutual trust.

6.CSR Initiatives

We recognize the importance of carrying out our social responsibilities throughout the supply chain, which includes our business partners and suppliers, in continuing our business. To that end, we value and expect partners and suppliers to actively participate in their CSR activities as well as to cooperate in our CSR initiatives.

7.Environmental Conservation

As stipulated in our "Basic Environmental Policy," we consider the impact of our business on the ecosystem and are committed to sustainable procurement, waste management, and conservation of water resources/biodiversity.

8.Respect for Human Rights

As stipulated in our "Basic Policy on Human Rights (Human Rights Policy)," we strive to maintain a safe working environment and engage in initiatives that respect the human rights and individuality of each employee. Furthermore, we prohibit all human rights violations and complicity in human rights abuses throughout our supply chain, including forced labor, child labor, harassment, and discrimination.

9.Approaches to Social Problems

We respond to international efforts and frameworks for addressing social problems (poverty, conflicts, etc.) and put emphasis on contributing to their solutions. On this basis, we exclude products and services that are deemed to potentially exacerbate the problems from our procurement selection.

*The basic policy of each Group company may differ from the above, depending on the characteristics of the company, or items to be procured. In such cases, the basic policy as set forth in each Group company shall prevail.

Unless otherwise specified, English-language documents are prepared solely for the convenience of non-Japanese speakers. If there is any inconsistency between the English-language documents and the Japanese-language documents, the Japanese-language documents will prevail.