On February 14, 2023, Endo Manufacturing Co., Ltd. stated in its press release that it had decided to oppose the shareholder proposals submitted by TK1 LTD. The proposals submitted were as follows, (i) Appropriation of Surplus: Based on the provisions of Articles 453 and 454 of the Companies Act, the year-end surplus for the 73rd term will be distributed to shareholders. In addition to the company's proposed disposal of surplus the company will pay a dividend of 200 yen per share of common stock. According to the Company if Shareholder Proposal 1 is approved the total amount of dividends will be approximately 1,762 million yen, which greatly exceeds the current net income attributable to the shareholders (796 million yen).

The Company will be presenting a proposal to pay a dividend of 18 yen per share to this Ordinary General Meeting of Shareholders, combined the total dividend will be approximately 1,921 million yen. (ii) Acquisition of treasury stock: Pursuant to the provisions of Article 156, Paragraph 1 of the Companies Act, within 150 days from the conclusion of the Ordinary General Meeting of Shareholders, a total of 2,000,000 shares will be acquired for a total acquisition price of 2,000 million yen (however, If the total acceptable acquisition price “distributable amount” as defined in Article 461 of the Companies Act) falls below that amount, In some cases company may obtain the maximum amount of total acquisition price permitted by the Companies Act. The Company states that this is an extremely large scale, accounting for 22.6% of the total number of shares (excluding treasury stock) the total profit will be 2,000 million yen, which greatly exceeds the profit attributable to owners of parent company of 796 million yen.

Company will provide funds for growth investment aimed at improving the medium- to long-term corporate value of the Company.