On April 19, 2023, Strategic Capital Inc. started its activist campaign against Wakita & Co., Ltd. by submitting a request to convene an Extraordinary General Meeting of Shareholders for the following proposals: (i) Appointment of 1 director who is not an Audit and Supervisory Committee Member: Appointment of Mr. Tsuyoshi Maruki to the post of director, (ii) Appropriation of Surplus, (iii) Amendment to the Articles of Incorporation related to Cross-shareholdings, (iv) Amendment to the Articles of Incorporation relating to Chairman of the Board of Directors, (v) Amendment to the Article of Incorporation regarding disclosure of individual remuneration of directors, (vi) Amendment to the Article of Incorporation regarding disclosure of Cost Capital, (vii) Amendment to the Article of Incorporation regarding formulation and disclosure of plan to aim for more than 1 PBR. The company has opposed the proposals for the following reasons: (i) The nomination and compensation committee believe that it is not necessary to elect a candidate as an optimal composition is one with a director candidate and an audit committee member proposed by the company, (ii) A proposal on paying a dividend of 38Yen per common stock will be submitted at the General Meeting of Shareholders in May and if the proposal is approved total return combined with share buyback will be achieved. Hence, even if the dividends are not paid, the company will be able to provide sufficient returns to the shareholders through dividends, (iii) The shareholder proposal states that the company will inform the issuer on strategically held shares and the shares it wished to sell.

However, the company believes it is inappropriate as it is not necessary to inform the issuing company on the intention to sell shares, (iv) On the discussion to separate the chairman of the Board of Directors from the CEO, the company states that it has established a system where management is checked by independent outside directors and that its supervisory function of the Board of Directors is fully functioning, (v) the Board of Directors of the company believes that both the procedure of determining remuneration as well as method of disclosure are appropriate and that there is no need to amend the Articles of Incorporation, (vi) & (vii) The company believes that these proposals are not suitable for inclusion in the Articles of Incorporation.