On May 2, 2023, Mr. Toshiyuki Yamada started an activist campaign against Lilycolor Co., Ltd. with the announcement of the following proposals: (i) Dismissal of 1 Director: Dismissal of Mr. Hiroshi Imafuku from the position of Director. The shareholder states that Mr. Imafuku is reluctant to expand the business such as supporting the abolition of the real estate renovation business and is behind the management turmoil caused due to repeated replacement of Presidents. Under these circumsatnces, business partners have expressed concerns regarding the turmoil.

The shareholder believes that it is essential to reorganize and create a strong management system. (ii) Appointment of 2 Directors: The shareholder states that to bring the company back on the growth trajectory post management turmoil, it has nominated Mr. Toshiyuki Yamada and Mr. Kazuhiro Ishihara to the post of Director as they are well qualified to resolve the issue at hand. They can be expected to contribute to planning, executing growth strategies as well as monitoring the financial situation.