On May 22, 2024, Airport Facilities Co., Ltd reported in its press release that it had received a shareholder proposal from LIM Advisors Limited for its 55th Annual General Meeting of Shareholders. The proposals are as follows, 1. Partial amendment to the articles of incorporation (prohibition of Amakudari from Japan Airlines Co., Ltd. and ANA Holdings Co., Ltd.), 2. Partial amendment to the articles of incorporation (sale of cross-shareholdings), 3. Partial amendment to the articles of incorporation (verification of purpose of cross-shareholdings and disclosure of results), 4. Partial amendment to the articles of incorporation (individual disclosure of director remuneration), 5. Disposal of surplus funds, 6. Acquisition of treasury stock, The board of directors opposes the shareholder proposals for the following reasons, (1) Company's current selection of directors is based on a strong governance system that is independent, appropriate, and highly transparent, and director candidates who will contribute to securing the common interests of shareholders and improving corporate value are selected in a transparent manner, according to the company, the first proposal which is to provide a clause in the articles of incorporation that stipulates specific details, is far from general and inappropriate, given the nature of the articles of incorporation, which are the fundamental rules of a company, (2) cross-shareholdings for purposes other than investment, the Company will individually quantify the number of shares held, taking into account the necessity of business activities such as business alliances, maintaining transactions, and strengthening transactions, the policy is to hold such assets only when the company judge that it is reasonable from a strategic and qualitative perspective, (3) The Company mentions that it appropriately discloses the status of cross-shareholdings in corporate governance reports and securities reports in accordance with the requirements of the Corporate Governance Code established by the Tokyo Stock Exchange, (4) In accordance with laws and regulations, the Company discloses the total amount of remuneration for each officer category, the total amount for each type of remuneration, and the number of eligible officers in its business report and securities report, (5) the company is preparing for future investments aimed at sustainable growth, aiming to pay stable dividends while maintaining a balance between maintaining financial soundness and returning shareholder returns through dividends, (6) The company aim to improve PBR and ROE by increasing ROA as set out in the medium- to long-term management plan, spending a large amount of funds to acquire treasury stock with a deadline of one year, as proposed by this shareholder, would have an impact on the execution of the Company's management plan.