CARTERS x SHINSUNG ISTMO MTG_v.3_0424 2024 (최종).pptx

About SSTS

1. SHINSUNG ㅣ CARTER’S April 24 th 2024 @ ISTMO Nicaragua

2. ■ #1 SHINSUNG GROUP OVERVIEW ■ #2 SHINSUNG CARTERS BUSINESS TABLE OF CONTENTS

3. 3 Shinsung Group 01 Shinsung G roup Overview Shinsung Export Business Global Network Export Business COP Strategy

4. Company Name Shinsung Tongsang Co., Ltd. Headquarter Seoul, Korea Founded January 1968 Industry Apparel manufacturer Number of Employees 900 (as Oct, 2024) Website www.ssts.co.kr Global Operations 5 COPs ( Indonesia, Vietnam, Myanmar, Nicaragua, Guatemala ) Page 3 Established SHINSUNG TONGSANG Co., LTD. 1968 Listed on KOSPI (Korean Stock Market) 1975 1994 Established Nicaragua Facility 1995 Established S.S.T.S. AMERICA Corp. 2003 2007 2010 Established Vietnam Facility Established Indonesia Facility Established Myanmar Facility 2020 Established Bentonville office 2021 Established Nicaragua Facility (UDN) 2021 Established Indonesia Facility PT. SGI Key Facts 900 Employee 56 Years $2.7B Revenue About Shinsung - Company Overview

5. Group Overview Domestic / Export Apparel Business $2.0B ( ▲ 29% Growth Rate ) Domestic $1.58B ( ▲ 46% YoY) Export $420M ( ▼ 10% YoY) Bags / Packs Manufacturing Export A.TION FASHION SHINSUNG $2.7B SHINSUNG GROUP ( ▲ 24% Growth Rate ) 2023 Domestic Apparel Business $350m ( ▲ 13% Growth Rate ) $350m ( ▲ 10% Growth Rate )

6. Exporting Business ■ Key Partners **OTHERS WOLVERINE, NEW WORLD SALES, BIO WORLD, C-LIFE, COSTA, ARMANI EXCHANGE, KOHL’S Bernette Brands , VAPOR, BIMINY BAY Export Sales Trend Unit : $ Million $420M 2023

7. Shinsung Global Network Vietnam (Sub) Knit 61 Lines 4.4M pcs/month (Own) Knit 20 Lines 1.0M pcs/month (Sub) Knit 166 Lines 6.3M pcs/month Indonesia Nicaragua (Own) Knit 75 Lines 4.7M pcs/month Guatemala (Sub) Knit 18 Lines 1.4M pcs/month Myanmar (Own) Knit 49 Lines 1.3M pcs/month (Own) Woven 66 Lines 0.8M pcs/month Korea Headquarter, Seoul USA Bentonville, AR Office China Shanghai Sourcing Office India (Outsourced) 83 Lines 3.8M pcs/month Bangladesh (Outsourced) 106 Lines 5.1M pcs/month TOTAL : 659 lines ( 27.9 Mil pcs/month) Honduras (Sub) Knit 15 Lines 1.0M pcs/month Region COO Lines Monthly CAPA Asia Vietnam 61 2,500,000 Indonesia 186 7,300,000 Myanmar 115 2,100,000 Outsourced Bangladesh 106 5,100,000 India 83 3,800,000 Central America Nicaragua 75 4,700,000 Guatemala 18 1,422,000 Honduras 15 1,000,000 Total 659 27,922,000

8. 8 Shingsung Entire COP Strategy VS 55% 45% WESTERN HEMISPHERE Key Strategies Leverage the unique strengths and capacities of both Western and Eastern hemispheres to optimize global performance. Capitalize on the diverse opportunities presented by different regions and continents to enhance synergy and efficiency. EASTERN HEMISPHERE $470M $465M $420M $460M (P) $480M (P) Guatemala 2 Sub-cons Honduras 1 Joint Venture Nicaragua 2 Owned ISTMO UDN (Print House) Vietnam 2 Sub-cons WESTERN HEMISPHERE EASTERN HEMISPHERE 108 Lines 7.1M pcs per Month 247 Lines 9.8M pcs per Month Indonesia 1 Owned 6 Sub-cons $470M $465M $420M P $465M P $480M

9. 9 SSTS CARTER’S BUSINESS 02 Business Overview _ Flashback Carter’s COP Strategy Factory Introduction (ISTMO & UDN Print House)

10. Key Strategies Shinsung Carter’s Business Overview ■ Pull up Shipment in 2022 Considering Logistic Delay ■ US Slow Market Impact on Sales Amount of 2023 ■ FY 2024, Sales Volume Recovery ▪ Woven Item Expansion, Brand Diversification ▪ PW SET ∙ EB Business Growth Flashback 70% 30% WESTERN HEMISPHERE EASTERN HEMISPHERE VS ■ Stabilization Asia COO → Under processing VOB PT.YHMS ■ Kick off Central America COO → FW25 (Conservative Volume) Sleepwear → Internal Fabric development Baby → Internal working Snap Supply By 2028

11. CO Factory Name Factory Status Total Capacity (pcs)/Month TTL No. of Line 　 Booked Capa for Carters PRODUCT/BRAND CATEGORY 　 Remark Q'ty (pcs) Booked No. of Line CAP Booked (%) ID PT. TIGA ACTIVE 1.20 M 20 KNIT 0.80 M 14 67% PW FASHION STYLE, BABY ID PT. SGI ACTIVE 1.00 M 20 KNIT 0.50 M 10 50% PW BASIC DRESS, JOY, WOVEN DRESS ID PT. YHMS UNDER VOB 2.00 M 40 KNIT 0.50 M 5 25% PW, EB (JOY/COM), SET VN MIND DUC ACTIVE 1.80 M 43 KNIT 0.60 M 12 33% PW, EB (JOY/COM), SET 0.80 M 18 WOVEN 0.42 M 5 53% PW WOVEN DRESS, PW SET(WOVEN) NI ISTMO OPEN CAPACITY 4.70 M 75 KNIT 0.30 M 5 6% SLEEPWEAR TOTAL 11.50 M 216 　 3.12 M 51 27% 　 Capacity Status l Plan Shinsung Carters Business Capacity Strategy- by factory ■ PT. SGI (ID) : PW Knit ▪ Woven Dress → Expansion the style scope ■ PT. TIGA (ID) : PW Fashion Dress, Romper, Baby → Optimized the fashion style of Caters product. ■ PT. YHMS (ID) : PW Knit Bottom (SP’25~), EB, Set → Capacity Balance w/ Minh Duc ■ MinhDuc (VN) : Targeting Shinsung Carters Order volume 30% → Woven Dress, COM, PW SETS (Knit/Woven) ■ ISTMO (NI) : Navigating for style suitability vs Carter’s Demands Sleepwear → Internal Fabric development Baby → Internal working Snap Supply 70% INDONESIA VIETNAM 30% VS 70% 30% WESTERN HEMISPHERE EASTERN HEMISPHERE VS

12. Factory Introduction l Central America ISTMO TEXTILES S.A. Other Sub- Con’t factories

13. Sewing Factory Info. TOTAL 102 LINES, 6.8M pcs per month UDN Print # of machine monthly capacity Full Auto OVAL 12~16cc 7,000/day 5 550,000 pcs Full Auto Rotary 8~10cc 7,000/day 4 450,000 pcs Semi Auto Rotary 8~32cc 4,000/day 8 500,000 pcs No.1 Graphic specialized factory In Nicaragua TOTAL 1.5Mpcs per month General Info l Central America Country Sewing Factory #of line Monthly capacity Nicaragua ISTMO MASAYA OWN Factory 75 4,700,000 Guatemala C.S.A. TEXTILES, S.A. SUB-FACTORY 8 672,000 Guatemala OK Modas , S.A SUB-FACTORY 10 750,000 Honduras Belle Honduras S.DE R.L JOINT VENTURE 15 1,000,000 　 　 　 108 7,122,000 OK Modas C.S.A Belle UDN ISTMO

14. CAPACITY of Sewing Mill Own Factory → 75 lines, 4.7M pcs per month CERTIFICATION BETTER WORK, SCAN, WRAP CUSTOMERS TARGET, GAP, OLD NAVY, UNDER ARMOUR, FANATICS COLEMAN, COSTA, DICKIES, BIMINI BAY Bottom Set Items Others CAPACITY of Print Mill Own Facility → 1.5 M pcs per Month Capacity Top Tee: 78% Pullover: 1.2% Tank: 9.6% Hoodie: 1.0% Polo/ Henley: 0.2% 70 % KIDS 7 % 23 % LADIES MENS BREAKDOWN BY PRODUCT Nicaragua: ISTMO TEXTILE

15. ISTMO + UDN PRINT HOSUE, NICARAGUA # of Lines : 25 Lines Monthly Capa : 1.6 M pcs CSR Programs : Better Work /WRAP Gold Certificate / Higg Index Compliance Audit Status Target (Acceptable) Under Armour (Passed) Walmart (Approved) GAP Inc (Acceptable) VF (Approved) # of Lines : 25 Lines Monthly Capa : 1.5 M pcs CSR Programs : Better Work / WRAP Gold Certificate / Higg Index Compliance Audit Status Target (Acceptable) Under Armour (Passed) Walmart (Approved) VF (Approved) Printing : 1.5 M pcs / Month CSR Programs : Better Work / Higg Index # of Lines : 25 Lines Monthly Capa : 1.6 M pcs CSR Programs : Better Work / WRAP Gold Certificate/ Higg Index Compliance Audit Status Target (Acceptable) Under Armour (Passed) Walmart (Approved) GAP Inc (Acceptable) VF (Approved) MASAYA FTY#1 MASAYA FTY#2 MASAYA FTY#3 UDN PRINT HOUSE

16. ISTMO l Quality Management Overview QA NICARAGUA FACTORIES △ Overall regional factory management △ Branch manager training △ Training material update △ Buyer regulation & update training △ Production data analysis △ Facility monitoring data analysis △ Regular facility quality & safety audit △ Regular meeting with line leaders △ Regular training for the factory △ Coordinating corrective action △ Implementing corrective action △ Weekly QA & QC meeting for improvement SSTS HQ QA QA NICARAGUA SSTS HQ QA ISTMO

17. ISTMO l Quality Management Overview PRE-PRODUCTION MEETING SHARING CRITICAL POINTS WITH RELEVANT TEAMS TO IMPROVE POTENTIAL QUALITY ISSUE FABRIC & ACCESSORY INSPECTION 4 POINT SYSTEM, 10% TO 100% INSPECTION TRACEABILITY – BARCODE SYSTEM RAW MATERIAL INFORMATION RECRODED FABRIC IN & OUT RECORD IN-HOUSE LABORATORY TEST SHRINKAGE, WEIGHT, TORQUE COLOR FASTNESS, AND PH CUT-PANEL INSPECTION 10% OF TOTAL PRODUCTION TRACEABILITY – BARCODE SYSTEM PANEL IN & OUT RECORD PILOT-RUN INSPECTION WORKMANSHIP & MEASUREMENT IN-LINE & END-LINE INSPECTION WORKMANSHIP & MEASUREMENT TRACEABILITY HOURLY SEWING RECORD FINISHING INSPECTION WORKMANSHIP & MEASUREMENT METAL DETECTOR 9 POINT CALIBRATION PACKING ACCURACY INSPECTION QTY, SIZE, COLOR, LABEL, PRICE TAG, ETC. RADIO FREQUENCY IDENTIFICATION FASTER, MORE ACCRUATE VERIFICATION PRE-FINAL & FINAL INSPECTION BASED ON BUYER’S REQUIREMENTS GARMENT WASHING & DYEING INSPECTION WORKMANSHIP & MEASUREMENT COLOR SHADE AND HANDFEEL PRINT & EMBROIDERY INSPECTION COLOR, HANDFEEL, GRAPHIC SIZE & PLACEMENT 100% METAL DETECTION FOR EMBROIDERY CUTTING SEWING FINISHING FINAL INSPECTION Raw Materials

18. Finishing section Sewing Lines Warehouse Auto cutting machine ISTMO l Factory Overview

19. Thank you! 2024 – Confidential – Copyright ⓒ SHINSUNGTONGSANG All Rights Reserved THIS DOCUMENT AND THE INFORMATION IN IT ARE PROVIDED IN CONFIDENCE, FOR THE SOLE PURPOSE OF ANY DISCLOSURE, COPYING, PRINTING, DISTRIBUTION, AND MAY NOT BE DISCLOSED TO ANY THIRD PARTY OR USED FOR ANY OTHER PURPOSE WITHOUT THE EXPRESS WRITTEN PERMISSION OF THE SHINSUNGTONGSANG

20. SSTS & CARTER’S INC ESG Progress 03

21. ESG Summary – Shinsung Overall HQ ESG ACTIVITIES 53% 16/30 From 2023~2024 April Total 16 ESG activities GOAL: 30 activities By 2032 ISTMO EDUCATIONAL PROGRAM 64% 638/1,000 From 2010~2023 Total 617 graduates GOAL: 1,000 graduates By 2036 ISTMO BLOOD DONATION 74% 2,961/4,000 From 2010~2023 Total 2,961L donated GOAL: 4,000L By 2032 ISTMO PACE 10% 156/1,600 Up to 2023, Total 156 employees graduated GOAL: 1,600 graduates By 2029 ISTMO ANNUAL DONATIONS LOCAL NURSING HOUSE: since 2016 LOCAL VOCATION SCHOOL: since 2011 TREE DONATION/PLANTING: since 2016 CENTRAL AMERICA GHG REDUCTION STATUS 213 CO2e/MT From 2021~2023, reduced… in Central America region

22. Contribution Activities – Shinsung HQ OXFAM DONATION August 2023, made a donation to Oxfam, an union of international NGOs to help the people in needs of help across the globe AID FOR ANIMAL PROTECTION In both June and September 2023, made donations to animal protection organizations to save the lab animals and raise awareness for animal protection UPCYCLE & DONATION Shinsung annual donation program where participants can make stuff dolls out of waste fabrics to support the single household youth AID FOR NATRUAL DISASTERS Shinsung has been supported the victims of natural disasters by donating Shinsung owned brand clothing DONATION ON UNICEF March 2023, Shinsung made first donation to help the children across the globe NATIONAL HERITAGE PRESERVATION November 2023, awarded by the Cultural Heritage Administration as a credit for national heritage protection awareness campaign conducted on June 2023 RECYCLED GARMENT DONATION May 2023, Shinsung donated garment made of wasted plastic bottles to the recycling workers of Seoul TARFFIC SAFETY CAMPAIGN FOR CHILDREN May 2023, Shinsung collaborated with Transportation Safety Authority to run the campaign to raise awareness for children traffic safety

23. Material Sustainability – Shinsung HQ ECO-FRIENDLY SHINSUNG Shinsung has made agreements with both Seoul city and Hyosung (textile company) for development of eco-friendly materials. As a result, Shinsung produced garments made of wasted plastic bottles. The garment has been donated to recycling workers HIGHER SUSTAINABILITY ‘BETTER DENIM’ Better Denim is one of Shinsung owned brand’s jean lineup. Not only Shinsung offers more ESG- friendly product to customers, but also reduce Impact on environment and worker health Less water No sandpaper Renewable material CLOTE Closer to earth CLOTE is Shinsung owned bag and pouch brand. CLOTE use 100% recycled material, 100% recyclable packaging materials, and donate 1% from its annual sales to 1% For The Planet. The goal is to make it up to Earth by minimizing the impact on environment and maximizing artistic value

24. Diversity Equity and Inclusion – Shinsung Worker Empowerment NICARAGUA : P.A.C.E July 2023 – program kick-off 156 workers completed the program until 2024 Goal is to 1,600 female workers to complete the program INDONESIA – VIETNAM : RISE Indonesia – 2024 Vietnam – 2025 Estimated program rollout plan P ERSONAL A DVANCEMENT & C AREER E NHANCEMENT GAP’s educational program for women employees of garment industry. The goal is to help them to reach higher position in the workplace, and live a better life. Currently ongoing in ISTMO 10% 156/1,600 156 UNTIL 2023 300 MORE EACH YEAR THE GOAL: 1,600 BY YEAR 2029 ROLLOUT STATUS/PLAN

25. ISTMO’s own employee educational course managed by ministry of education. Provides educational, life skill courses. Employees who were teachers, or trained by ministry of educational will teach students GRADUATES STATUS 64% 638/1000 FROM 2010~2023 TOTAL 638 GRADUATES THE GOAL 1,000 GRADUATES BY 2036 Training courses for Shinsung owned Production Management System Other than ‘YES I CAN’ courses, the factory provides additional courses, for employee self-improvement and to be prepared with automated and smart factory style in near future Computer and basic softwares Automated machine operation ‘YES I CAN’ EMPLOYEE EDUCATIONAL PROGRAM PREPARATION FOR SMARTER FACTORY Diversity Equity and Inclusion – ISTMO textiles S.A.

26. Diversity Equity and Inclusion – ISTMO textiles S.A. ‘DROP OF BLOOD, DROP OF LOVE’ BLOOD DONATION ISTMO employees are donating blood to Nicaraguan red cross, to share the love and to give hands to the people in needs of medical support DONATION STATUS 74% 2961/4000 FROM 2010~2023 TOTAL 2,961L DONATED THE GOAL 4,000L DONATION BY 2036

27. SUPPORTING NICARAGUAN CHILDREN October 2023, ISTMO donated 174,984 (approximately worth USD $920,000) clothing to Nicaraguan ministry of family and youth to support Nicaraguan children ‘HELPING HANDS’ REGULAR DONATION TO LOCAL COMMUNITY As a part of local community, ISTMO has been conducted number of donation activities/voluntary works on regular basis to local communities: nursing house (since 2016), vocation school (since 2010) Diversity Equity and Inclusion – ISTMO textiles S.A.

28. Higg ∙ GHG ∙ CDP – Carter’s Supplier HIGG FEM STATUS 2023 PT. SHINSUNG GRAND INDONESIA INDONESIA VIETNAM FACTORY TIER 1 2 1 2 FEM IN PROGRESS vFEM IN PROGRESS 2023 EMISSION DATA TIER 1 (4) TOTAL ABSOLUTE GHG EMISSION TIER 2 (9) EMISSION OVERVIEW HAS BEEN PARTICIPATED SINCE 2015 PT. TIGA GUNUNG 47% IN PROGRESS PT. YEONHEUNG MEGASARI 50% IN PROGRESS PT. UNIVERSE DESIGN INDONESIA IN PROGRESS IN PROGRESS PT. DONG A DECAL 62% 61% PT. DAESANG 43% 41% PT. HANDSOMEKOVI INDONESIA 80% 80% PT. PRIMA ILJO 56% IN PROGRESS MINH DUC BRANCH JEIL KOVI VINA HWASHIN VINA WASHI WASHI HANOI HOPEX TEXTILE CO., LTD 74% IN PROGRESS 66% IN PROGRESS IN PROGRESS IN PROGRESS 34% 37% COMPLETED IN PROGRESS 4,432,819 CO2e/Kg 18,857,519 CO2e/Kg Total 23,290,337 CO2e/Kg emitted during 2023 64% 36% 19% 81%

29. Sustainability – Shinsung Central America CA GHG EMISSION OVERVIEW UNIT – CO2e/MT ↓ 11% ↓ 25% GHG EMISSION REDUCTION SCIENCE BASED TARGET Shinsung set a goal to reduce GHG emission by 25% until 2031 (baseline year – 2021). From 2021~2023, we were able 213 CO2e/MT of GHG in Central American area. ↓ 3.2% (2 new factories) 213 CO2e/MT total amount of decreased GHG from 2021 to 2023 IS EQUIVALENT TO… ~9,681 TREE’S ANNUAL CO2 ABSORBANCE ISTMO GREEN ACTIVITIES Conducted multiple green activities since 2016: planting trees, picking up trash with local children, and donating trees to the local community. Up to 2024, around 15,000 trees have been donated and planted ISTMO TOWARDS ECO-FRIENDLY To lower the GHG emission, ISTMO has been equipped with rainwater harvesting system and biomass boiler (for 100% cotton fabric leftovers)

30. 30 Traceability & Sustainability 04 SSTS l Carters Current Status SSTS Internal Process & Future Plan SSTS Quality Control Analysis (3 Factories)

31. Traceability HAP : Currently Submitting Documents Sustainability Bhive : Upload CIL list for Carter’s Visibility Fabric mills Linked into System Sustainability BCI cotton : Started using BCI Cotton from F’23 SSTS Progress in Traceability & Sustainability HAP PLATFORM Traceability Awareness Trained by “ Toiny Pang” Senior Traceability Manager 2. Inspectorio T&A management (WIP -> Inspectorio tracking module) SSTS as a pilot test vendor (Planned in Q2 May) ** Target : Also added T&A management function 3. PMS : SSTS own management system Traceability/Efficiency/ Accuracy Easy Visualization System Intensive / Less Labor input PMS system applicable in PT. SGI by Q3’24 (trials Vr .) Progress by Nominated Fabric Mills Warehouse (In/out) Cutting Sewing Inspection ERP Production data WMS Material EMS Monitoring PMS Total Solution RFID Packing ESP Purchase & Shipment QMS Quality Fabric mill