Supplementary Explanation of the Proposals for the 127th Annual General Meeting of Shareholders (Our Views on Proxy Advisory Firm ISS’s Recommendation to Vote Against)

Following ISS's recommendation to vote against Proposal No. 2 at the 127th Annual General Meeting of Shareholders, the Company supplemented its view seeking support for the independence of the director candidates and for the election of the representative director and president. The Company explains that, if the independence of the candidate in question is recognized, 6 of the 11 outside directors would be independent, representing a majority.

Worth reading

53Recurring

Scored from 1 of 4 sections

Direction

Neutral

Direction inferred from the company’s description.

Scale

Directors (independent outside directors, out of 11)

Wording

Conditional

How definitive the wording is.

Resolutions for the General Meeting of Shareholders

Annual (127th)

2026

Jun 17

Date and time(start time: Not disclosed)21 days from this disclosure to the meeting

Matters for resolution1 item

Election of 7 Directors (excluding Directors who are Audit and Supervisory Committee Members)

Director nominee7 (breakdown between newly appointed and outside directors: not disclosed)

Resolutions for the General Meeting of Shareholders
Item	Details
Type of shareholders' meeting	Annual (127th)
Date and time	17 June 2026 (start time: Not disclosed)
Matters for resolution	Proposal No. 2: Election of 7 Directors (excluding Directors who are Audit and Supervisory Committee Members)
Director nominee	7 (breakdown between newly appointed and outside directors: not disclosed)

Items this document does not state (2)

Shareholder ProposalPercentage voting in favor

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

ISS deemed Yamana (山名) non-independent because his former employment at Mitsubishi Corporation and the volume of transactions with the company had not been disclosed, and recommended voting against the election of Iwata (岩田) on the grounds that there would be only 5 independent outside directors out of 11, which would not constitute a majority. The Company explains that approximately 27 years have passed since Yamana (山名) left Mitsubishi Corporation, that he has had no business contact with Mitsubishi Corporation since leaving, and that there is no issue regarding his independence.

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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.