On May 14, 2024, Komeri Co.,Ltd. announced in its press release that it had received a shareholder proposal from Nippon Value Investors KK for its 63rd Annual General Meeting of Shareholders. The proposals are as follows, i) Partial amendment to the Articles of Incorporation (Decision-making body for dividends from surplus, etc.), ii) Appropriation of surplus. The company has opposed the proposals for the following reasons, i) The Shareholder Proposal is a proposal from a short-term perspective that does not take into account the business environment and business specificity in which the Group is operating, and the company believes that the flexibility and mobility of the Group's future business operations and capital policy will be undermined and will not benefit shareholders, ii) The shareholder proposal calls for a dividend of 50% of net profit, i.e. a dividend payout ratio of 50%.

This is focused on short-term shareholder returns and could undermine the Group's growth base investment resources for its medium- and long-term growth strategy, thereby reducing the Group's competitiveness. The Company believes that increasing the Group's corporate value over the medium to long term while maintaining a balance between stable and continuous dividends to shareholders, investment in growth platforms to strengthen the management base and retained earnings will contribute to increasing shareholder returns.