On April 18,2023, Strategic Capital, Inc announces shareholder proposal against Bunka Shutter Co., Ltd. the proposals submitted were as follows, Proposal 1: Set dividend payout ratio to be 100%, the activist proposes the company to adopt a new shareholder return policy of a 100% dividend payout ratio to prevent a further build-up of equity capital. Proposal 2: Distribute Daiwa House shares as dividend in-kind: the Company has approx. JPY 1.9B in Daiwa House, Daiwa House has denied any relation between holding shares and business and even disclosed that fact, the activist propose the prompt disposal of Daiwa House shares by distributing the shares in kind, which would also contribute to shareholder returns.

Proposal 3: Revision of the provisions of articles with regard to the convener and chair of the General Meeting, the activist proposes that the Chairperson position be abolished, that management responsibility be clarified, and that Toshihiko Shiozaki step down from his position, although Shiozaki is the Chairman, he appears to have little awareness of corporate value and no sense of urgency over the weak stock price, the Company has both a Representative Director and Chairman of the Board and a Representative Director and President, and it is unclear which one is considered the head or the CEO. Proposal 4: Revision of the provisions of articles with regard to who will chair the Board of Directors meetings, the activist propose that the remuneration of the Representative Director be disclosed as well as the calculation method. Proposal 5: Abolish the position of Chairperson of the Board of Directors.

Proposal 6: Revision of the provisions of articles with regard to disclosing individual remuneration of Directors with representation rights. Proposal 7: Revision of the provisions of articles with regard to disclosing the calculation method of performance-linked remuneration for Directors with representation rights. Proposal 8: Revision of the provisions of articles with regard to disclosing information on mergers and acquisition in Australia ,the Company refuses to disclose the results of the M&A claiming that the ?results of the Australian M&A are not large enough to disclose?

and ?the analysis is not advanced enough to disclose.? the company is trying to do further overseas M&A. Therefore, before making another overseas M&A, the activist proposes that the Company first disclose the results of the Australian M&A.