Purchasing Mold Asset Management Regulations

Chapter 1: General Provisions

> Article 1 [Purpose] The purpose of this regulation is to promote efficient mold asset
management by prescribing the overall mold procedures of our company.

> Article 2 [Scope of Application] Except for cases where there is a special stipulation in
other regulations regarding mold management in our company, this regulation applies.

> Article 3 [Definition of terms]

The definitions of terms used in these regulations are as follows.
① A mold is a tool for mass-producing parts necessary to construct a product, and refers
to a mold that forms certain parts by injecting metal and non-metal materials.
② Idle mold refers to a mold that cannot be directly donated to current production, such as
process change or business withdrawal, and can be reused immediately or through partial
repair. says)
③ Unused molds refer to molds that cannot be donated to production and cannot be used
internally due to wear, deterioration, failure, damage, etc.
(Among the idle molds, it refers to molds that have passed more than one year.)
④ Discarded molds refer to molds that are completely unusable or that cannot be transferred
and utilized by other partners among disused molds.
(Including molds older than 1 year among disused molds.
⑤ Storage refers to identifying available, idle, and disuse and managing them in a
designated location for each partner company.
⑥ Disposal refers to discarding a mold determined as a discarded mold by losing its
function.

> Article 4 [Types and scope of managed molds]

① Tangible fixed mold assets
1. Courage
2. Lid (cap or stopper)
3. tray
4. Other
 Chapter 2 Management of Mold Assets

> Article 5 [Management Responsibility and Authority]

① The production technology room has responsibility for general management of mold
assets, and the partner company has responsibility for preservation of fixed assets after
acquisition.
② Departments related to mold asset management, in principle, are departments that
participate in mold production, such as marketing department, package design department,
and innovation department, and select a person in charge of mold management.
The management responsibilities of the mold management manager in the relevant
department are as follows.
1. Management of durability limits of molds (request for repair and new production
in consultation with partner companies in case of exceeding the standard)
2. When disused and discarded molds are notified, whether to reuse is determined
(within 7 days after notification)

> Article 6 [Obligation of Mold Asset Preservation]

① The maintenance of molds is handled by subcontractors and subcontractor management
departments, and the production technology room determines responsibility for maintenance
costs based on durability limits in accordance with the specifications.
② Due diligence of molds is regularly conducted by the production technology room once a
year based on the asset ledger. (However, it may be conducted irregularly based on the
judgment of the head of the Production Technology Office)
③ The production technology room must fulfill its duties in managing mold assets to
increase the efficiency of assets.

> Article 7 [Duty to Report] The person in charge of mold management in each department
must immediately report to the Production Technology Office when any of the following
causes occur with respect to mold management assets.
① When rights have been infringed or are likely to be infringed
② When disused mold occurs
③ When there is an increase or decrease in other mold assets
 Chapter 3 Acquisition of Mold Assets

> Article 8 [Manufacture of mold]

① When acquiring a mold by manufacturing, CMG or the package design team reviews the
suitability of the mold, such as the necessity, price, acquisition time and development
schedule, payment method, etc. to get approval
② The production technology room selects a company after determining the unit price and
requests production.
③ The Production Technology Office reviews the completion report upon completion of
mold production, determines the acquisition cost, and allocates assets to ERP.
④ When the production technology room acquires a new mold asset, it assigns a tag-no and
engraves it on the front or side of the mold.
⑤ For tag-no and equipment number, refer to 'Standards for tag-no and equipment number'
(Supplementary Table 6).

Chapter 4 Determination of Idleness, Disuse and Disposal

> Article 9 [Determination of Idleness, Disuse, and Disposal]

① According to Chapter 1, Article 3, the Production Technology Office determines idle,
disuse, and discard molds on a semi-annual basis, requests approval from the head of the
Production Technology Office, and notifies the CMG or Package Design Team.

Chapter 5 Mold Storage and Disposal

> Article 10 [Storage of Idle and Unused Molds] The production technology room has
subcontractors move idle and unused molds to a storage location, manage and supervise them
to be stored according to the 'Storage Method' (Appendix Table 1), and place idle/unused
stickers on them. Attach and manage identification.

> Article 11 [Movement of idle and disused molds]

① In case of moving idle molds (or disused molds) to another partner company, the relevant
department prepares an 'asset transfer report' (Appendix Table 7-business contact) in the
production technology room. After approval is obtained, the Production Technology Office
ensures that the assets can safely move to the site to be acquired. However, the business site
to be acquired shall be responsible for the cost incurred due to the transfer of assets.

> Article 12 [Disposal of discarded molds]

① Production technology room selects discarded molds in accordance with Chapter 4,
Article 10.
② Among the discarded molds, the relevant department reviews the possibility of continuous
use, and if the discarded mold is judged to be usable, it requests the production technology
room to postpone disposal with the approval of the head of the relevant department.
③ The production technology room raises a list of discarded items for the remaining
discarded molds, excluding items received as pending discard within 7 days after the
notification of the discarded mold target.
④ In accordance with the waste products approved by the CEO, receive a quote from each
regional waste treatment company, determine the unit price, and dispose of it. However,
when the mold is discarded, it is destroyed and discarded so that the function of the mold is
lost.
⑤ After disposing of the mold, the production technology room delivers the attached
document to the accounting team for accounting.

> Article 13 [Record maintenance of discarded molds]

① Production technology room changes the function location of discarded molds by
referring to 'PM module standard information change work progress' (Supplementary Table
2).
② If there is an off-book asset that does not exist in the asset ledger, the discovery
department or use department immediately prepares the 'off-balance sheet asset management
ledger' (Supplementary Table 3) and sends it to the Production Technology Office.