【Kurashiki Rayon】Opposition to Shareholder Proposal｜May 2026

Board of Directors' Opinion on the Shareholder Proposal

Kurashiki Rayon received a shareholder proposal from AVI JAPAN OPPORTUNITY TRUST PLC on April 16, 2026, and after thorough consideration toward the Annual General Meeting of Shareholders scheduled for June 26, 2026, the Board of Directors unanimously resolved to oppose all aspects of the proposal. The proposal pertains to amendments and abolition of the Articles of Incorporation regarding large-scale acquisition activities. The Board opposed these measures, citing concerns that they could undermine corporate value and shareholder interests.

Future Response and Corporate Strategy

Our company continues to demonstrate a prudent stance toward shareholder proposals, emphasizing the enhancement of corporate value and the protection of shareholder interests. We have explicitly opposed the proposal and denied the necessity of abolishing anti-takeover measures or amending the Articles of Incorporation. Going forward, we will continue to listen to shareholder proposals and market feedback, while striving to increase management transparency and corporate value.