On April 3, 2023, Nagahori Corporation received a letter from Re Generation Inc. stating the activist?s intention to exercise the shareholder?s right to make a proposal. The activist stated (i) Regarding the rejection of the shareholder?s proposal on election and dismissal of directors, the shareholder believes that exercise of voting rights by shareholders has been greatly distorted due to impression manipulation by the management, (ii) Regarding the ?dishonest attitude of management? in response to questionnaire, the shareholder claims the director is not suitable for a listed company as they tend to withhold inconvenient facts while actively disclosing facts which are advantageous to them, (iii) Even though Ms. Mayuko Sumomo was elected as director, it was clear from her skill set that the company has no intention of appointing women for the purpose of incorporating a ?women?s perspective?

into management or sales strategies. For these reasons, the shareholder believes it cannot entrust the company?s management with achieving sustainable growth and increasing corporate value and thus, it will make a shareholder proposal. Regarding the shareholder?s claims the company has stated that there was neither unfair manipulation nor a dishonest attitude in the responses and criticism of promotion of women is contrary to the facts.

The Company further stated that it is surprised by the proposing shareholder?s attitude as they have ignored the opinions of a majority of the shareholders. The shareholder has proposed the following 4 candidates to the post of director, Mr. Tomonari Obata, Ms. Ayana Sato, Mr. Katsuji Sugawara, and Mr. Takaaki Yoshizawa.