On April 17, 2024, Wakita & Co., Ltd., announced in its press release that it had received shareholder proposals from Strategic Capital, Inc. for the 64th Ordinary General Meeting of the Shareholders. The proposals are as follows, (i) Appropriation of Surplus, (ii) Amendment to the Articles of Incorporation (Establishment of Corporate Value Enhancement Committee), (iii) Amendment to the Articles of Incorporation (Chairman of the Board of Directors), (iv) Amendment to the Articles of Incorporation (Disclosure of individual remuneration for directors with representative authority). The company stated that it had decided to oppose the proposals for the following reasons, (i) The proposal is based on a short -term perspective and is not appropriate from the viewpoint of improving corporate value over the medium ?

long term. Stable dividends and sufficient returns to shareholders are possible even without paying dividends as stated in the proposal., (ii) The use of real estate investment trusts (REITs), which is mentioned as an example of drastic management reform in the reason for the proposal, states that the company withdraw from current real estate leasing business and change the business to property management. However, the real estate business is positioned as one of the most important businesses for stable earnings, and the continuation of the real estate leasing business will contribute to stable returns to shareholders in the future., (iii) The Board of Directors is chaired by the President and Representative Director, who are well versed in the Company's business operations.

The Company's Board of Directors engages in active discussions, including appropriate advice and proposals from outside directors, and makes optimal decisions based on such discussions. In addition, the Board of Directors' role and responsibilities as a supervisory body are deemed to be fully fulfilled in the evaluation of the effectiveness of the Board of Directors., (iv) The Board of Directors believes that the procedures for determining the amount of remuneration for the Company's officers, including representative directors, and the method of disclosure are both appropriate, and that it is not necessary to amend the Articles of Incorporation in relation to this proposal.