VOLVO CAR CORPORATION

VOLVO CAR CORPORATION Application of Transport Labels for Batch deliveries Issue: 1 Date: 2017-09-15 Public VOLVO CAR CORPORATION

Application of Transport Labels 2 (29) Table of Contents 1 Introduction... 3 1.1 Label variants... 3 2 Paper, Size and Materials... 4 3 Printers and Software... 5 4 Label layout and Data content... 6 4.1 Data Area Layout... 6 4.2 Data Area Content... 6 4.3 Data Area Table OTL1... 9 4.4 Data Area Table KLT Label... 10 4.5 Additional information, Data areas... 11 4.6 Label content description: OTL1... 13 4.7 Label content description: KLT Label... 14 5 Samples... 15 6 Bar Code... 16 6.1 Bar Code Symbologies... 16 6.2 Bar Code Quality... 17 7 Usage of Package and Transport Labels... 18 7.1 Standard S-Package Label (S)... 18 7.2 M-Package Label (M) and G-Package Label (G)... 18 7.3 Box S-Package Label (S)... 19 7.4 OTL1 Example: Standard S-Package... 19 7.5 OTL1 Example: M-Package... 20 7.6 OTL1 Example: G-Package... 21 7.7 KLT Label Example: M-Package... 22 7.8 KLT Label Example: G-Package... 23 8 Position and affixing of the Label... 24 8.1 Standard S-Package (Palletized goods)... 24 8.2 Standard S-Package (Special racks)... 25 8.3 M & G-Package... 25 8.4 Label holder (EMB 153)... 26 9 KLT Specific Requirements... 27 9.1 General... 27 9.2 KLT range... 27 9.3 Usage of Package and Transport Label... 27 9.4 Position and affixing of the Labels... 27 10 Checklist when preparing a Transport Unit... 28 11 Standards... 29 12 Revision History... 29

Application of Transport Labels 3 (29) 1 Introduction Supply Chain Excellence is by Volvo Cars a key area to be a competitive and attractive car brand. To be able to reach this goal, the supply chain is continuously developed to enable a lean and efficient logistic flow. An example of this is to integrate the supply chain parties by the means of Electronic Data Interchange (EDI) messages and enabling automatic scanning of the Transport Label in all vital handling steps. Volvo Cars absolute requirement and goal is to have fully integrated and automated data processing with no manual interference of the administrative data. Suppliers delivering parts to Volvo Cars must therefore be able to implement the label according to demands specified in this guideline. This guideline is applicable for batch deliveries only. 1.1 Label variants Note that two variants of labels OTL1 and KLT Label exist in this specification. The OTL1 (A5 size) shall always be the default implementation choice unless otherwise directed in writing by Volvo Cars Packaging Engineering or Supplier Logistics Assurance based on packaging preferences (usually small packaging types such as KLTs or expendable boxes). Any change from OTL1 to KLT Label or vice versa in running production requires verification of the new labels by Volvo Cars or by provider appointed by Volvo Cars prior to implementation. OTL1 KLT Label

Application of Transport Labels 4 (29) 2 Paper, Size and Materials The format of the OTL1 is A5; 210x148 mm. (see also chapter 4) This format may not be printed on larger paper size (e.g. A4) The format of the KLT Label is 210x74 mm. (see also chapter 4) The label paper must be white with black printing. The label material has to have a weight of no less than 160-170 g/m². Above is required to assure the label information being readable in the complete supply chain An adhesive label (the whole surface of the label must be adhesive) must be used on plastic or cardboard boxes (see also chapter 8). Exceptions exist, eg. plastic boxes with integrated labelholders Adhesive labels may be pressure-sensitive or dry-gummed as long as the adherence to the package surface is assured and that the label is removable from the Transport Unit after usage The adhesive must be of alkaline water-soluble kind to be approved from environmental aspects and for washing purposes The adhesive part of the label, exclusive the back-side paper, has to have a weight of no less than 80 g/m² A Label holder for master labels must be used for the Transport Units described in point above (see also chapter 8) Supplier must secure that the paper is suited for the selected printer type. The label must be durable enough to ensure readability at its end destination, i.e. weather resistant paper shall be used. It is not acceptable to use plastic bags/covers on the label unless specifically expressed for certain packaging types. For further details, please follow this link: https://www.odette.org/

Application of Transport Labels 5 (29) 3 Printers and Software Volvo Cars (or appointed partner) performs a validation process of the labels when a new supplier is implemented, and it is expected that the supplier maintains the approved quality at all times. The general quality of the label is extremely important for the readability of bar codes as well as for the plain text. The data content is highly important for all vital handling steps in the supply chain. A number of factors have effects on the printing quality. Therefore continuous maintenance, cleaning, refilling of expendables like toner/foil, printer head replacement, usage of approved media etc. shall be part of the supplier s internal quality assurance process. Thus it is recommended that a maintenance agreement is in place, and that the printer quality is supervised. Volvo Cars recommends the use of either Direct Thermo / Thermo Transfer or Laser printers (such as but not limited to Zebra, Intermec, Sato etc). These printers are designed for high volume printing in industrial environments. If laser printer is used to print labels, it must be approved by the printer supplier for industrial use. A laser printer is normally more sensitive to industrial environments, and the lifetime is significantly shorter than Thermo printers. It is therefore very important to follow maintenance manuals and continuously supervise performance and quality. Based on above, laser printers shall only be considered at low volume label printing. Note; most laser printers require edge compensation which is not allowed. No other printing methods than those described above are allowed due to quality aspects. If a printer needs to be replaced, supplier must secure that quality requirements are met before shipments to Volvo Cars. Volvo Cars requirements on the labels are very high and therefore this specification must be followed strictly. Any failure to meet requirements may/will result in A-reports and/or demerits in delivery performance. Follow the simple checklist below to ensure adherence to requirements. Checklist: Select a printer brand with a proven track record for industrial use Consider the best choice of printer from a total performance point of view, consider the printing volume Secure that layouts and details in this specification are followed and carried out by an expert Secure a maintenance / service agreement with the supplier or other expert A backup printer of same type must be quickly available in case of breakdown / quality defects Assign a control function internally to continuously supervise quality Secure that cleaning and maintenance is carried out Changes to the printing method must be secured prior to shipment to Volvo Cars

Application of Transport Labels 6 (29) 4 Label layout and Data content 4.1 Data Area Layout The size of each data area is defined to fit the content considering font size, bar code heights and dimensions. Outer border line (frame) is not allowed on the label. This to provide the best reading ability of the bar code (see Quiet zone in chapter Bar code symbologies). Each data area shall be separated by thin lines. For best possible reading, and prevention of staples in the barcodes, the barcodes must be positioned 20 mm from the left hand edge of the OTL1 Label, and 12 mm of the KLT Label. See illustration in below picture. 4.2 Data Area Content Data printed on the label must be consistent with the data collected from the Delivery Schedules (DELFOR / DELINS) and in conjunction with the ASN message (DESADV / AVIEXP). The data information in readable text must be printed above (beside in certain cases) and in conjunction with the bar code, e.g. Advice note number. Conditional Data Areas (Occasional or Dependent information) which are not required by any agreement between Volvo Cars and the respective supplier, must be left blank. Non-significant (leading) zeros and blanks/spaces in the data string must be suppressed/deleted, when the bar code and/or human readable characters are printed. The label is divided into two sections: a. Shipping section Receiver, Dock/Gate, Advice Note number, Supplier address (OTL1), Net weight (OTL1), Gross weight (OTL1) and Number of boxes (OTL1). b. Parts Identification section Part number, Quantity, Supplier, Package ID, Description, Logistic Reference Area, Date, Country of origin, Engineering change and Batch number. OTL1: 20 mm between label edge and barcode KLT Label: 12 mm between label edge and barcode

74 mm 148 mm Name of document Page Appendix Application of Transport Labels 7 (29) The illustration below shows the layout of the OTL1 and KLT Label, dimensions in millimeter (mm). Note: Not actual size. OTL1 210 mm KLT Label 210 mm

Application of Transport Labels 8 (29) Characters Helvetica (or similar) shall be used for all human readable text. Character set: ISO 3098-1 Titles and Identifier Codes In the upper left corner of each data area, the Data Area titles shall be printed. This information is only allowed to be printed in English. Font size to be used is 1.5 mm. Data Identifiers shall be printed as a part of the Data area title, at the end of the title and within brackets, e.g. Package ID (S). Further information regarding Data Identifiers is to be found in the Data Area Table, column Data Identifiers. The Data Areas are numbered from 1-17 (OTL1) and 1-13 (KLT Label). See content specifications under Data Area Table and Additional information, Data Areas on the next pages. OTL1 KLT Label

Application of Transport Labels 9 (29) 4.3 Data Area Table OTL1 Data Area Content OTL1 LABEL INFORMATION User Field Length Attributes Excl. Data Identifiers Bar code Size height (mm) Text Size height (mm) Data Identifiers Text type 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 SHIPPING SECTION Receiver (Transport Unit*) Volvo Cars receiving site R 2 lines x an..20 Receiver (Box S-Package*) Volvo Cars receiving site D 2 lines x an..20 Dock/Gate (Transport Unit*) Volvo Cars additional internal destination R 1 line x an..12 Dock/Gate (Box S-Package*) Volvo Cars additional internal destination R 1 line x an..12 Advice Note Number (Transport Unit*) Advice note number of shipment R n..8 13 7 N Supplier Address Supplier s name and address R an..29 5 Net Weight (Kg) Total part weight in package in kg D n..5 7 Gross Weight (Kg) Total part + packaging weight in kg R n..5 7 No. of Boxes Number of packages within one transport unit D n..5 7 PARTS IDENTIFICATION SECTION Part Number Volvo Cars Part number R n..24 13 13 P Quantity Package or Transport unit quantity R n..10 13 13 Q Description Volvo Cars part description Logistic Reference R an..22 7 D Supplier ID Volvo Cars Supplier number/id (Partner code). R an5 13 5 V Country of Origin (All S-Labels*) Part country of origin R an2 7 Country of Origin (All M/G-Labels*) Part country of origin N Date Despatch date (D) or Production date (P) R an7 7 Engineering Change Volvo Car engineering change number D an..14 7 Package ID Identity of the Package R n..9 13 5 S/M/G Batch Number Supplier's batch reference number D n..9 13 5 H 7 7 13 13 *See chapter 7 User Attributes: Field Length: Data Identifiers R = Required an = alpha numeric value N = Advice Note Number D = Dependent a = alpha value P = Part Number N = Not Used n = numeric value Q = Quantity..10 = 1-10 positions V = Supplier ID 10 = exact 10 positions S = S-Package M = M-Package G = G-Package H = Batch Number

Application of Transport Labels 10 (29) 4.4 Data Area Table KLT Label Data Area Content KLT LABEL INFORMATION User Field Length Attributes Excl. Data Identifiers Bar code Size height (mm) Text Size height (mm) Data Identifiers Text type 1 2 3 SHIPPING SECTION Receiver (Transport Unit*) Volvo Cars receiving site R 2 lines an..20 Receiver (Box S-Package*) Volvo Cars receiving site D 2 lines an..20 Dock/Gate (Transport Unit*) Volvo Cars additional internal R 1 line destination an..12 Dock/Gate (Box S-Package*) Volvo Cars additional internal destination Advice Note Number (Transport Unit*) Advice note number of shipment D 1 line an..12 R n..8 9 3 N 3 3 5 5 PARTS IDENTIFICATION SECTION 4 Part Number Volvo Cars Part number 5 Quantity Package or Transport unit quantity R n..24 9 3 R n..10 9 3 Q 6 7 8 Supplier ID Volvo Cars Supplier number/id (Partner code). R an5 9 3 V Package ID Identity of the Package R n..9 9 3 S/M/G Description Volvo Cars part description R an..22 5 9 Logistics Reference D Country of Origin (All S-Labels*) Part country of origin R an2 5 10 Country of Origin (All M/G-Labels*) Part country of origin N 11 Date Despatch date (D) or Production date R an7 3 D / P (P) 12 Eng. change Volvo Car engineering change number D an..14 3 13 Batch No Volvo Car engineering change number D an..9 9 3 H *See chapter 7 User Attributes: Field Length: Data Identifiers R = Required an = alpha numeric value N = Advice Note Number D = Dependent a = alpha value P = Part Number N = Not Used n = numeric value Q = Quantity..10 = 1-10 positions V = Supplier ID 10 = exact 10 positions S = S-Package M = M-Package G = G-Package H = Batch Number

Application of Transport Labels 11 (29) 4.5 Additional information, Data areas See also Label content description in section 4.6 and 4.7. Receiver Line 1 (upper): Name of receiving site, populated from DELFOR / DELINS Line 2 (lower): City, State, Country Code according to Ship To address in purchase order (e.g. Gothenburg, SE or Ridgeville, SC, USA) Dock/Gate This information must be flexible as it might be changed from one shipment to another due to changes in production Advice note number Within Volvo Cars the Advice Note Number is used and matched to the information given in the Advance Ship Notice (AVIEXP/DESADV) The number may not be repeated within 12 months Leading zeroes is not allowed Remark: Some recipients may have restrictions on the data format Number of boxes (OTL1 only) Number of boxes on the transport unit (Small boxes / expendable boxes). Shall not include any eventual empty and unlabeled boxes used for filling a full multiple. Part number Part number is designated by Volvo Cars for the product in the package Quantity Quantity in the package shall be according to Volvo Cars packing instruction and its unit load or a multiple of it Logistics Reference Supplier owned field, normally used for the Supplier s part number If a supplier adds an internal bar code, it is necessary to adapt to the FACT DI- Standard. This is to prevent misreadings etc. However, if agreed by the parties, the area may be used for other purposes Supplier ID Supplier partner code of the supplier Manufacturing site (SupplierMFG, see Purchase order) Country of origin Country of origin of part. 2 digit country code according to ISO 3166 (latest version) Only to be used on S-Package Labels Date Date of dispatch (stated at first hand) or date of production The date must be printed in the format YYMMDD (Y = year, M = month, D = day) preceded by the character "D (Dispatch date) or P (Production date) Engineering change Information may be coded (e.g. P-04) or in clearer (e.g. pre series etc) Package ID The Package ID must be a unique number assigned by the supplier Leading zeroes is not allowed The number may not be repeated within 12 months

Application of Transport Labels 12 (29) Identifiers S, M or G are assigned according to label usage, see examples further on in this specification Batch number For traceability purposes Graphical symbols Marks may be printed as graphic symbols or applied as stickers in the Data area of Part number as long as it does not impair reading of the printed bar code (quite zone and bar code). Applicable for OTL1 only, not KLT Label. Area where indicators may be printed Version/Source Indicator OTL1 This line indicates the exact version and source of the OTL. Shall appear on one line in the same font as in the rest of the OTL. To be located below the Batch number area, in the same font as the rest of the OTL. 2,5 mm character size, exactly as follows: Odette Ver. 1 Rev. 4 KLT Label No version / source indicator required.

Application of Transport Labels 13 (29) 4.6 Label content description: OTL1 Odette DESADV OTL1 * Depending on Transport Package structure, see chapter 7 ** Shall always be the partner code of the Manufacturing site. See Purchase Order. *** First choice, use NAD 3039 (SE). Second choice, use NAD 3039 (CZ). Odette AVIEXP OTL1 * Depending on Transport Package structure, see chapter 7 ** Shall always be the partner code of the Manufacturing site. See Purchase Order. *** First choice, use SDT 3296. Second choice, use CDT 3296. Example and reference to the EDI messages AVIEXP or DESADV to be found at http://microsite.hcltech.com/edi/cars/index.html

Application of Transport Labels 14 (29) 4.7 Label content description: KLT Label Odette DESADV KLT Label * Depending on Transport Package structure, see chapter 7 ** Shall always be the partner code of the Manufacturing site. See Purchase Order. *** First choice, use NAD 3039 (SE). Second choice, use NAD 3039 (CZ). Odette AVIEXP KLT Label * Depending on Transport Package structure, see chapter 7 ** Shall always be the partner code of the Manufacturing site. See Purchase Order. *** First choice, use SDT 3296. Second choice, use CDT 3296. Example and reference to the EDI messages AVIEXP or DESADV to be found at http://microsite.hcltech.com/edi/cars/index.html

Application of Transport Labels 15 (29) 5 Samples OTL1 (S) (not to scale) KLT Label (S) (not to scale)

Application of Transport Labels 16 (29) 6 Bar Code 6.1 Bar Code Symbologies Bar codes must be of the 3-of-9 (code 39) type with the following requirements: Check since there are two versions (CODE39 and CODE39 Full ASCII) Code Configuration The format for each bar code-element is: Start character, Identifier (Data Identifier), Data characters and Stop character. All bar coded areas are printed left justified. Inter-character gap The space between two bars in code 39 shall be as close to the average narrow element width as practically possible Quiet zones Bar codes require a quiet zone to the left and right of the bar/space pattern. Begin and end margins (quiet zones) must be at least 20mm for OTL1 and 12mm for KLT Label so that no line or similar (e.g. staples, straps or fixation stickers) makes the decoding of the bar code impossible. Bar code heights The height of the bar code must be 13 mm on OTL1, 9 mm on KLT Label. This to give the best possible scanning possibilities as the area allows. Narrow element and Ratio Narrow element is the smallest bar element in the bar code. Narrow element can also be named as X- dimension. Narrow element is allowed to be set between 0,33-0,43 mm. Volvo Cars recommends the modulation to be set to 0,33 mm. (Some printers having minimum 200 dpi the recommendation is 0,375 mm.) The Ratio is the proportion between narrow and wide element in the bar code. Volvo Cars recommend using the following table to set the Ratio. This to use the most of the data area and make the bar code less vulnerable. Narrow element Maximum Ratio 0,33 3,0 0,36 2,8 0,40 2,4

Application of Transport Labels 17 (29) 6.2 Bar Code Quality Quality Volvo Cars is applying the ISO/IEC 15416 - standard, Bar Code Quality Test Specification Linear Symbols. - Minimum Overall Symbol Grade is set to B - Nominal measuring Aperture is set to be 10 mil - Wave length of light is set to 660 nm In all this gives: B/10/660 The result of the Symbol Grade is defined with the letters/qualifiers from A to D and F as for failure. The following 7 parameters are measured: Parameter Symbol Grade Explanation Volvo Cars Reference code Pass or Fail Wrong set up of bar code A / Decode Symbol contrast A, B, C, D or F The difference between the highest and the lowest B (SC) reflectance in the whole symbol, including quite Minimum Edge Pass or Fail zone The worst reflectance difference between a bar A contrast (Ecmin) and a space in a symbol Modulation A, B, C, D or F The ratio between edge contrast and symbol B Minimum Pass or Fail contrast The reflectance of the black bar must be lower A Reflectance than half of the maximum reflectance in the (R.min/R.max) symbol Defects A, B, C, D or F Dirty label or white lines/dots in bar code B Decodability A, B, C, D or F How much of the tolerance has been used B Volvo Cars expect ALL parameters to be measured to give an Overall Symbol Grade as minimum B. Summary of Bar code specification: Type of bar code Code 39 Narrow element (X-dimension) 0,33 0,43 (recommended 0,33) Ratio 1:2,4 1:3,0 (recommended 3,0) Print contrast signal (PCS) >= 75% Quiet Zone > 6,4 mm Colouring of code Black Bar code height OTL1: 13 mm, KLT Label: 9 mm Bar code orientation in thermo printing Fence like orientation Overall Symbol Grade Minimum B

Application of Transport Labels 18 (29) 7 Usage of Package and Transport Labels 7.1 Standard S-Package Label (S) Used for any of the following Transport units: Racks Pallet with frames Pallet with closed cardboard walls In summary: When a single Transport Unit containing one part number has been agreed with Volvo Cars (see Packaging Instruction). 7.2 M-Package Label (M) and G-Package Label (G) Used for any of the following Transport units: 750/780 small box unit 840 small box unit Cardboard box unit Note: may also be used for other box types not shown in pictures. In summary: M-Package: Transport Unit containing boxes carrying the same part number with unit loads agreed with Volvo Cars (see Packaging Instruction). G-Package: Transport Unit containing boxes carrying different part numbers with unit loads agreed with Volvo Cars (see Packaging Instruction).

Application of Transport Labels 19 (29) 7.3 Box S-Package Label (S) Used for any of the following boxes (individual level): 750/780 small box 840 small box Small cardboard box Note: may also be used for other box types not shown in pictures. The labels shall be adhesive for all boxes except those with an integrated labelholder 7.4 OTL1 Example: Standard S-Package Standard S-Package = one single Transport Unit containing the same part number. Volvo Cars refers the unit load to one Standard S-Package (e.g. pallet or rack). In the example below, the parts are packed in packages of 128 pieces on an L-pallet with four frames and a lid. With the current syntax rules and in accordance with Volvo Cars specification, the notification is as follows: Standard S-Package Label (OTL1) One Standard S-Package Label (S) shall be attached on each Transport Unit.

Application of Transport Labels 20 (29) 7.5 OTL1 Example: M-Package M-Package = one single Transport Unit containing boxes carrying the same part number. Volvo Cars refers the unit load to one Box S-Package. In the example below, the parts are packed in 16 small boxes of 16 pieces in each on an L-pallet and a lid on top. In all 256 pieces. With the current syntax rules and in accordance with Volvo Cars specification, the notification is as follows: M-Package Label (OTL1) One Box S-Package Label (S) shall be attached on each box. The M-Package Label (M) shall be attached on a cardboard Label Holder (EMB 153) on the Transport Unit. Box S-Package labels (2 out of 16, OTL1) Note: Information in the shipping section may be omitted at the Box S-Package labels (S). A Transport Unit consisting of boxes shall always have full layers (for load stability / stackability / safety). To complete a layer it may be needed to add one or more empty and unlabeled boxes. Transport Unit -750: max 4 layers (8/16/24/32 boxes depending on the call off quantity) Transport Unit -780: max 4 layers (4/8/12/16 boxes depending on the call off quantity) Transport Unit -840: max 4 layers (2/4/6/8 boxes depending on the call off quantity

Application of Transport Labels 21 (29) 7.6 OTL1 Example: G-Package G-Package = one single Transport Unit containing boxes carrying different part numbers. Volvo Cars refers the unit load to one Box S-Package. In the example below, different parts are packed in 16 small boxes with different quantities in each, placed on an L-pallet and a lid on top. With the current syntax rules and in accordance with Volvo Cars specification, the notification is as follows: G-Package Label (OTL1) One Box S-Package Label (S) shall be attached on each box. The G-Package Label (G) shall be attached on a cardboard Label Holder (EMB 153) on the Transport Unit. Box S-Package labels (2 out of 16, OTL1) Note: No part number or quantity is given on the G-Package Label (G). Information in the shipping section may be omitted at the Box S-Package labels (S). A Transport Unit consisting of boxes shall always have full layers (for load stability / stackability / safety). To complete a layer it may be needed to add one or more empty and unlabeled boxes. Transport Unit -750: max 4 layers (8/16/24/32 boxes depending on the call off quantity) Transport Unit -780: max 4 layers (4/8/12/16 boxes depending on the call off quantity) Transport Unit -840: max 4 layers (2/4/6/8 boxes depending on the call off quantity

Application of Transport Labels 22 (29) 7.7 KLT Label Example: M-Package M-Package = one single Transport Unit containing boxes carrying the same part number. Volvo Cars refers the unit load to one Box S-Package. In the example below, the parts are packed in 16 expendable cardboard boxes of 16 pieces in each on an expendable pallet and a lid on top. In all 256 pieces. 1 OTL1 shall unless otherwise directed by Volvo Cars Packaging Engineering be used for the master label (M), and 16 KLT Labels shall be used for the Box S-Packages. With the current syntax rules and in accordance with Volvo Cars specification, the notification is as follows: M-Package Label (OTL1) One Box S-Package Label (S) shall be attached on each box. The M-Package Label (M) shall be attached on a cardboard Label Holder (EMB 153) on the Transport Unit unless otherwise specified by the Volvo Cars Packaging Engineer. Box S-Package labels (2 out of 16, KLT Label) Note: Information in the shipping section may be omitted at the Box S-Package labels (S). A Transport Unit consisting of boxes shall always have full layers (for load stability / stackability / safety). To complete a layer it may be needed to add one or more empty and unlabeled boxes. Transport Unit -750: max 4 layers (8/16/24/32 boxes depending on the call off quantity) Transport Unit -780: max 4 layers (4/8/12/16 boxes depending on the call off quantity) Transport Unit -840: max 4 layers (2/4/6/8 boxes depending on the call off quantity

Application of Transport Labels 23 (29) 7.8 KLT Label Example: G-Package G-Package = one single Transport Unit containing boxes carrying different part numbers. Volvo Cars refers the unit load to one Box S-Package. In the example below, different parts are packed in 16 small boxes with different quantities in each, placed on an L-pallet and a lid on top. 1 OTL1 shall unless otherwise directed by Volvo Cars Packaging Engineering be used for the master label (G), and 16 KLT Labels shall be used for the Box S-Packages.With the current syntax rules and in accordance with Volvo Cars specification, the notification is as follows: G-Package Label (OTL1) One Box S-Package Label (S) shall be attached on each box. The G-Package Label (G) shall be attached on a cardboard Label Holder (EMB 153) on the Transport Unit unless otherwise specified by the Volvo Cars Packaging Engineer. Box S-Package labels (2 out of 16, KLT Label) Note: No part number or quantity is given on the G-Package Label (G). Information in the shipping section may be omitted at the Box S-Package labels (S). A Transport Unit consisting of boxes shall always have full layers (for load stability / stackability / safety). To complete a layer it may be needed to add one or more empty and unlabeled boxes. Transport Unit -750: max 4 layers (8/16/24/32 boxes depending on the call off quantity) Transport Unit -780: max 4 layers (4/8/12/16 boxes depending on the call off quantity) Transport Unit -840: max 4 layers (2/4/6/8 boxes depending on the call off quantity

Application of Transport Labels 24 (29) 8 Position and affixing of the Label General For wooden pallets, labels shall always be attached horizontally on wooden frames by using staples The label on small boxes, card board boxes and label holders must be adhesive Strapping or bundling of the Transport Unit shall always be done on the long side of the pallet. Any other labels or markings on the Transport Unit must be removed before dispatch to Volvo Cars as they may interfere automatic scanning etc. To facilitate the best possible reading environment for scanning the bar code there are a number of prerequisites to fulfill and prepare prior to shipment to Volvo Cars, see below. 8.1 Standard S-Package (Palletized goods) Position: The label shall always be attached on the bottom left hand side at the short end corner Exception 1: On K-pallets (820x615mm) the label shall be attached in the middle at the bottom frame Exception 2: On H- (1805x820mm), F- (1630x1220mm) and E- (2400x820mm) pallets the label shall be attached at the left hand long side corner. Affixing (pallet with wooden frames): Label shall be attached with staples. One staple in each corner and one in the middle If self-adhesive label material is used, do NOT remove the back paper Affixing (cardboard): Self-adhesive label shall be used

Application of Transport Labels 25 (29) 8.2 Standard S-Package (Special racks) Position Position the label in the intended Rack Label holder of the rack. Affixing The label shall be positioned in the Rack Label holder with no additional fixation. If self-adhesive label material is used, do NOT remove the back paper. 8.3 M & G-Package Position The Master Label (M or G) shall be attached on a Label holder. This Label holder shall be positioned under the Small box/cardboard box at the bottom short end left hand corner (see pics below). The Box S-Package label (S) shall be attached on the short end of the small box -780 or on the equivalent cardboard box The Box S-Package label (S) shall be attached on the long end of small box -840/-750 or equivalent cardboard box In both set ups named above, the labels have to be directed outwards from the short end of the Transport Unit, i.e. all labels must be visible / facing outwards. Specific requirements for KLT boxes; see chapter 9

Application of Transport Labels 26 (29) Affixing Self-adhesive label material shall be used. Master label (M or G) shall be attached on a Label holder (EMB 153). Specific requirements for KLT boxes; see chapter 9 8.4 Label holder (EMB 153) Label Holders may be ordered via apak: Mail: order@apak.se Tel: +46 (0)31 7212209 Website: www.apak.se Label holder can also be purchased by the supplier via own sources. BUT: must correspond to size below and be resistant to dampness and different weather / storage / freight conditions Specific requirements for KLT boxes; see chapter 9 50 mm 45 45 mm THICKNESS Paper thickness = 1mm 219 mm 360 mm

Application of Transport Labels 27 (29) 9 KLT Specific Requirements 9.1 General Certain regions / plants will use KLT boxes for part shipments, or for specific part families (e.g. fasteners). In these cases, suppliers will be informed / directed by Volvo Cars Packaging Engineering. Due to its differences in physical attributes compared to the Volvo Cars Smallbox system, certain label requirements are unique for KLTs. At the time of issuance of this document version, all concepts and range of boxes available for use is not yet specified. However, see below for general guidance. 9.2 KLT range US domestic supply: Full range still to be finalized. Consult Volvo Cars Packaging Engineering China domestic supply: Full range still to be finalized Europe domestic supply: Volvo Cars KLT 3215 is used for certain specific part families 9.3 Usage of Package and Transport Label KLT Label shall be used for Box S-Package labels. See chapter 7 OTL1 shall be used for M/G-Package labels (i.e. the Transport Unit master label) unless otherwise specifically directed by Volvo Cars Packaging Engineering 9.4 Position and affixing of the Labels The KLT Labels shall be positioned into the integrated labelholders of the KLT box For certain KLTs (such as KLT 3215), the KLT Label shall be inserted in the label holder and secured by a low / medium adhesive dot or tape on the top section of the label. See picture below Position and affixing of M/G-Package labels; consult Volvo Cars Packaging Engineering Packing pattern for full or best visibility of Box S-Package labels; consult Volvo Cars Packaging Engineering

Application of Transport Labels 28 (29) 10 Checklist when preparing a Transport Unit Staples: Do NOT put any staples in the bar code. The bar code will then be damaged and unreadable for scanning device. Do NOT put any staples as close to the bar code as the quite zone will be affected. It is NOT allowed to use staples on plastic / cardboard boxes. Stickers, Tape or similar: Do NOT use any of these as it might impair the reading of the bar code, and the label may fall off during transit to Volvo Cars. Exceptions exist for KLTs, see chapter 9 Straps: Shall NOT cover any part of the label. It is NOT allowed to use tape or similar to hold the label in place. The complete label must be adhesive. Exceptions exist for KLTs, see chapter 9 Transparent plastic bag: It is NOT allowed to use plastic bag to hold / position the label as the reflection of it makes the bar code unreadable. Exceptions exist for KLTs, see chapter 9 Internal supplier labels: The Transport label is the only allowed label on each handling unit (individual box or pallet). Supplier or Forwarder unique labels are NOT allowed and shall be removed prior to shipment to Volvo Cars. Stapling: When attaching the transport label on wooden frames, supplier is recommended to use a staple device shown below.

Application of Transport Labels 29 (29) 11 Standards Naming Standard Odette Transport Label Version 1 Revision 4 Bar Code Quality Test Specification Linear ISO/IEC 15416:1 Symbols Bar Code Verifiers Conformance Specification, ISO/IEC 15426:1 Linear Symbology Specification code 39 ISO/IEC 16388 Data Identifier FACT Data Identifier Standard Character set ISO 3098-1 Country of Origin (country code) ISO 3166 (latest available version) The Layman's Guide to ANSI, CEN and ISO Bar Code print quality has also been used as a guideline for this specification. 12 Revision History Version 1, 2017-09-15: Label variant added (KLT Label) Requirement and field for Country of Origin (CoO) added to OTL1 and KLT Label KLT chapter added Correction of URL and contact info apak Correction of URL to HCL website Misc updates: pictures, updates of certain texts and examples (printers, minor example corrections etc)