On May 15, 2024, Wakamoto Pharmaceutical Co., Ltd. announced in its press release that it had received a shareholder proposal from Nanahoshi Management Ltd. for its 129th Ordinary General Meeting of Shareholders scheduled to be held on June 27, 2024. The proposals are as follows, 1. Separate withdrawal of reserve fund, 2. Appropriation of surplus funds, 3. Partial amendment to the articles of incorporation (add disclosure of the number of laboratory animals purchased), 4. Partial amendment to the Articles of Incorporation (greenhouse gas emissions equity related to cross-shareholdings), 5. Partial amendment to the Articles of Incorporation (submission of securities reports before the annual general meeting of shareholders), 6. Partial amendment to the articles of incorporation (disclosure of measures to realize management that is conscious of capital costs and stock price), The company?s Board of Directors decided to oppose the proposals, For the following reasons: (1) the company mentions that its separate reserve fund is recorded based on investment risks during the development period, and withdrawing the entire amount would mean that the Company would not be able to invest in the development of pharmaceuticals and medical devices. company believe that this would make it difficult for the company to continue as a pharmaceutical company, to improve the corporate value over the medium to long term, (2) The proposal is to continue paying dividends equivalent to 9/100 of net assets per share until the stock price valuation improves, according to the company this leads to dividends being paid based on a short-term perspective without taking into account the need for continuous, which poses an obstacle to achieving stable medium- to long-term growth.

(3) company conduct animal experiments in an appropriate manner from the standpoint of animal welfare and management, as well as compliance with laws and regulations, company believes, stating it in the articles of incorporation may restrict the board of directors' ability to make flexible and agile decisions, (4) The company continues to obtain ISO 14001 certification with the aim of reducing the burden on the environment, Company mentions that it has reduced greenhouse gas emissions by 748.1 tons compared to the previous year, Company has adopted both the policy for reducing cross-shareholdings and the management policy for greenhouse gas emissions, stating them in the articles of incorporation may restrict the board of directors, (5) Securities reports have added information on sustainability-related ideas and initiatives, and in the future, the details of disclosure regarding important contracts are scheduled to become more specific, there is an increasing need to thoroughly verify the appropriateness before disclosing information, company will comply with laws and regulations and ensure the accuracy and appropriateness of securities reports, (6) The company believe that a policy of flexibly and proactively disclosing information rather than setting a uniform timing is in line with the purpose of disclosure. Therefore, as in this proposal, company do not believe that it is necessary to set a uniform timing for the disclosure of individual specific matters in the articles of incorporation that define the basic matters of the company's organization and operation.