Opposition to Shareholder Proposal | Consideration of Privatization and Discussions on Enhancing Corporate Value

Overview of IR

The Company announced its opposition as a Board of Directors' opinion regarding the shareholder proposal on May 18, 2026. The proposal involves partial amendments to the Articles of Incorporation and the establishment of a special committee for strategic review. The Company judged the current governance structure to be sufficient and rejected the need for establishing a new committee. The proposing shareholder claims the importance of accurately assessing corporate value, addressing the gap between market valuation and intrinsic value, and the necessity of investments to achieve long-term vision. The Company responds cautiously to these claims.

Future Outlook and Impact on Shareholders

The Company indicates its plan to maintain the current management structure while working on medium- to long-term enhancement of corporate value. Regarding the shareholder proposal, it intends to preserve flexible governance and conduct strategic reviews as needed, continuing to assess the rationality of remaining listed. The Company emphasizes ongoing dialogue with shareholders and a commitment to maximizing long-term corporate value.