Notice Regarding Our Board of Directors’ Opinion on the Shareholder Proposal

Overview of the Shareholder Proposal and Board's Opinion

The shareholder proposal seeks to address the issue of treasury stock acquisition at the 119th Annual General Meeting of Shareholders scheduled for March 24, 2026, requesting that the total acquisition amount of 200 billion yen be executed within one year. In response, our Board of Directors resolved to oppose the proposal, citing concerns that the substantial acquisition amount would limit growth investment opportunities, undermine the company’s ability to adapt to business transformation, and weaken financial resilience.

Shareholder Return Policy and Financial Strategy

Our company’s fundamental policy is to maintain and continue stable dividends. For the fiscal year ending December 2025, a full-year dividend of 339 yen per share is planned, including a year-end dividend of 169.5 yen, representing a fifth consecutive year of dividend increases with a payout ratio of 87%. An increase to 363 yen is also planned for the fiscal year ending December 2026. Additionally, since 2021, we have continued treasury stock acquisition and cancellation, establishing a framework of 50 billion yen as of February 10, 2026, to facilitate agile acquisitions. We also place importance on securing funds for growth investment and risk management, aiming for a total return ratio of 50% as the lower reference threshold to promote shareholder returns.