The NISSIN FOODS Group (hereinafter referred to as “the Group”) regards artificial intelligence (AI) as a technology that supports human creativity, expertise, and innovation. The Group views AI as a key technology for delivering new value to our customers and contributing to society.

While AI can help improve operational efficiency and the quality of products and services, it also carries the risk of producing erroneous or biased results or exhibiting unexpected behavior. As such, the Group will use AI responsibly and in compliance with laws, social norms, and internal regulations. This approach will be guided by a human-centric approach.

The Group’s AI Basic Policy (hereinafter referred to as “Policy”) shall apply to the planning, development, implementation, provision, and use of AI by all officers and employees of the Group.

For the purposes of this Policy, the term “AI” shall include systems and services that utilize AI technology, including but not limited to generative AI, AI that performs predictions or classifications, and AI agents that make decisions, perform processing, or operate systems within a defined scope.

The Group shall also require contractors and other business partners to acknowledge and cooperate with this Policy as necessary.

The Group will use AI to support human creativity, expertise, and innovation, driving the creation of new value across our products, services, and business operations.

This approach goes beyond merely implementing AI. By leveraging AI’s strengths and capabilities, we will redefine the division of labor between humans and AI and reevaluate our business processes, thereby enhancing the value we deliver to our customers.

In the use of AI, the Group shall respect human dignity, autonomy, human rights, and diverse values.

Humans will define the purposes, scope of application, and rules and standards for decision-making and processing involving AI, and responsibility for its use will rest with the individuals and organizations within the Group. Regardless of whether AI makes decisions or performs processing, responsibility will not be attributed to AI itself. In both critical decision-making and routine operations, authorized individuals will engage appropriately in accordance with the associated risks and impacts and will perform the necessary verification, judgment, or intervention.

To uphold the trust of our customers and society, the Group shall not use AI in ways that are socially unacceptable, such as in violation of laws and regulations or in ways that may cause serious harm to people. Furthermore, the Group shall define the purposes and scope of AI use, as well as the rules and standards for decision-making and processing, and will not use AI in any manner that deviates from these guidelines.

Given that AI may produce results containing errors or biases, or exhibit unexpected behavior, we will appropriately identify the risks associated with AI use, restrict its use as necessary, and conduct ongoing reviews.

We will strive for necessary and efficient use of AI, while considering the environmental impact associated with its use, including the consumption of computing resources, energy, and water.

In the use of AI, the Group shall comply with applicable laws and regulations, including internal policies and regulations, governing the protection of personal information and privacy, and information security.

We will handle personal information, confidential information, and other important information appropriately in accordance with their nature and intended use, and prevent unauthorized use, leakage, tampering, or loss.

Data used for AI will be obtained and used through lawful and appropriate means. We will also appropriately manage the input of information into AI services, its storage, its use for training, and its provision to third parties.

We will employ multi-layered cybersecurity measures that account not only for unauthorized access to AI systems and attacks that exploit AI inputs to cause unintended outputs or behavior, but also for the possibility that AI may operate beyond its intended scope. Furthermore, we will continuously review necessary measures in light of AI advancements and evolving risks.

When using inputs to AI or outputs generated by AI, we shall respect intellectual property rights (including copyrights), portrait rights, privacy, and other relevant third-party rights.

The Group shall respect human rights and diversity in the planning, development, implementation, provision, and use of AI, and will strive to prevent discrimination, bias, and any other form of unfair treatment.

AI outputs may contain biases resulting from the data used, the characteristics of the AI model, or how it is used. The Group will remain vigilant regarding the human rights impacts of biases in AI output, such as discrimination and bias, and will take appropriate measures, including reviewing usage methods as necessary.

The Group will not introduce or use any AI that engages in the following unfair practices: influencing individuals in an unfair manner, taking advantage of those in vulnerable positions, assigning character scores that disadvantage individuals, and monitoring individuals using biometric information without legitimate grounds.

The Group will strive to provide customers, business partners, employees, and other stakeholders with the necessary information in an easy-to-understand manner. This information should include the fact that we use AI, its capabilities and characteristics, the data sources used, and the anticipated risks. The Group will take into account the significance of the impact of AI use and the perspective of the respective party.

When using AI outputs to make business decisions, we will provide information on the method of use and the basis for those decisions, as necessary and to the extent that they are explainable.

The Group will clearly identify the organizations and individuals responsible for AI use. In the event of an incident, the Group will conduct the necessary investigations, implement corrective measures, take steps to prevent recurrence, and provide explanations. When AI interacts directly with people, we will clearly indicate that the response is provided by AI.

The Group shall provide ongoing training to ensure that its officers and employees understand the potential, characteristics, and risks of AI and can use AI appropriately—after conducting the necessary verification—without placing undue reliance on its outputs.

Through this training, we will develop human resources capable of appropriately addressing issues related to safety, privacy and security, fairness, and transparency, and acquiring the knowledge and skills necessary to use AI.

Pursuant to this Policy, the Group will promote the responsible use of AI under an appropriate governance framework. Furthermore, the Group will review this Policy and related internal regulations as necessary, considering changes in AI technology, laws and regulations, the social environment, and usage conditions.