On May 18, 2022, Strategic Capital, inc. stated an announcement withdrawing its proposals at the annual shareholder meeting in consideration of the following: (i) On May 12, 2022, “Notice regarding an update to the mid-term business plan” and the financial results briefing held the following day, the Representative Director & CEO acknowledged the change in management policy and presented a strategy to enhance shareholder value from the perspectives of business, finance and ESG with clear rationale. Based on this and numerous dialogues with the Company, the activist Strategic Capital expressed that it determined that Arisawa Mfg. Co., Ltd. is changing its management policy to fulfill the duties entrusted by its shareholders and all other stakeholders, and (ii) Therefore, stated that it will continue engaging in dialogues with the Company's management, decided to withdraw all proposed agenda items.