On May 16, 2023 Miyaji Engineering Group announced the shareholder proposal by ESG Investment Partnership for the 20th Ordinary General Meeting of Shareholders scheduled to be held on June 29, 2023, the proposals submitted were as follows, Proposal 1: Appropriation of surplus- the Activist mentions that the the Company should, at the very least, achieve a stock price of 5,979 yen, which is 1x PBR. ROE (return on equity) must be raised to achieve a stock price of 1x PBR. Activist calls for an additional dividend of 244.33 yen per share, the Company opposes the proposal for the reason, if the shareholder proposal is approved, the amount of dividends will exceed the amount of non-consolidated other retained earnings of the Company, Proposal 2: Partial Amendment to the Articles of Incorporation (Individual Disclosure of Director Compensation)- The following article will be newly established as Article 31, Paragraph 2 of the current Articles of Incorporation: Regarding remuneration for directors who have the right to represent the Company and its specified subsidiaries, regardless of the amount, each year, in the business report and securities report, the amount and content of remuneration will be disclosed individually, and the method of determination will be specified.

The Company is willing to opposes this shareholder proposal as well.