On May 14, 2024, Kyokuto Kaihatsu Kogyo Co., Ltd. announced in its press release that it had received a shareholder proposal from Strategic Capital Inc. for its 89th Annual General Meeting of Shareholders. The proposal is as follows, i) Appropriation of Surplus. The company has opposed the proposal stating, i) The Company intends to submit a proposal to the 89th Annual General Meeting of Shareholders to be held on 26 June 2024 to set the interim dividend at ¥ 29 per share.

The annual dividend, including the interim dividend of 29 yen per share, will be 87 yen per share, an increase of 33 yen from the previous year, and the dividend payout ratio will be approximately 95%. While continuing to provide a high level of shareholder returns to meet the expectations of shareholders, the Company also intends to ensure that it has sufficient capacity to invest in future growth, with medium- and long-term business continuity and stability in mind. It believes that the Shareholder Proposal does not fit in with the policy on shareholder returns.