On June 30, 2020, Kyokuto Kaihatsu Kogyo Co.,Ltd. announced the Voting Results of Proposals resolved at the Ordinary General Meeting of Shareholders on June 28, 2022. The Proposals 1 to 4 from the Company were approved, and on the other hand, the proposals of the shareholders, the Proposals 5 to 11 were rejected excluding Proposals 7 and 8 because the number of voting rights has not been counted due to the upper part of the bills has been withdrawn. Specifically the following are the proposals: Proposal 1 about Disposal of surplus, Matters concerning dividend 32 yen per share of the Company, Proposal 2 about Partial amendment of articles of incorporation stipulated in the proviso of Article 1 of the Supplementary Provisions of the "Act for Partial Revision of the Companies Act" for the introduction of the electronic provision system, Proposal 3 about Appointment of Tatsuya Nunohara, Kazuhiko Harada, Takeo Norimitsu, Noboru Horimoto, Teruyuki Kizu, Akira Michigami, Hiroyuki Terakawa, and Keiko Kaneko as directors, Proposal 4 about Appointment of Akira Sakurai as Audit & Supervisory Board Member.

These proposals were approved, and the following were not approved: Proposal 5 about Disposal of surplus, The total amount of dividends will be the amount multiplied by the number of shares subject to dividends as of the record date of the voting rights of the 87th Ordinary General Meeting of Shareholders of the Company, Proposal 6 about Amendments to the Articles of Incorporation concerning the disclosure of the cost of capital, the Company shall determine the weighted average cost of capital ascertained by the Company within one month from the date of submission of the report, Proposal 7 and Proposal 8 has been withdrawn, Proposal 9 about Amendments to the Articles of Incorporation concerning the cancellation of treasury stock, Chapter 10 Cancellation of treasury stock by the ordinary resolution of the general meeting of shareholders stipulated in Article 309, Paragraph 1 of the Companies Act., Proposal 10 about Cancellation of treasury stock: All of the treasury stock held by the Company will be canceled on condition that Proposal 6 is approved and passed, The content of the shareholder proposal submitted by the proposing shareholder is described as it is. "Proposal 6" refers to Proposal No. 9, and Proposal 11 about Amendment of Articles of Incorporation concerning strategically held shares were rejected.

So, the Proposals from activist Strategic Capital, Inc, have not been approved with the vote of the shareholders.