On May 15, 2024, transcosmos inc. announced in its press release that it had received a shareholder proposal from Nippon Active Value Fund plc for its 86th Annual General Meeting of Shareholders. The proposals are as follows, i) Partial amendment to the Articles of Incorporation (cancellation of treasury shares), ii) Cancellation of treasury shares. The company has opposed the proposals for the following reasons, i) The Board of Directors will continue to consider implementing the cancellation of treasury shares if, depending on the circumstances at the time, the Board of Directors considers that this would contribute to the enhancement of corporate value and the common interests of shareholders.

The Board of Directors believes that a resolution on capital policy, including the cancellation of treasury shares, by the Board of Directors in accordance with the provisions of the Companies Act, rather than by the General Meeting of Shareholders, will enable a more flexible capital policy based on medium- and long-term management strategies and, consequently, contribute to improving corporate value, ii) The Board of Directors of the Company resolved at its meeting on 30 April 2024 to cancel 4,930,930 treasury shares (10.11% of the total number of shares issued). In view of these circumstances, the Company considers that no further cancellation of treasury shares is necessary at this time.