On April 27, 2023, Strategic Capital Inc. started its activist campaign against Daidoh Limited by submitting a request to convene an Extraordinary General Meeting of Shareholders for the following proposals: (i) Revision of the Articles with regard to disclosure of the number of stock acquisition rights granted and held by directors, executive officers and corporate auditors based on the stock option plan (SOP): The shareholder fears that in light of the issues with the SOP, where the number of shares granted increase as the share price decline and can be exercised for one yen, the president and other officers hold an excessive number of rights thereby causing a lack on incentive to increase shareholder value which in turn results in a weak share price, (ii) Revision of the Articles with regard to disclosure of deliberations by the Nomination and Remuneration Committee (NRC): The shareholder believes that NRC has continued to operate the SOP in a rambling manner since its inception and questions the effectiveness of the committee, (iii) Abolition of SOP for corporate auditors: the purpose of the SOP is ?to provide an incentive to increase the share price over the medium- to long-term,? but under the Companies Act, the role of corporate auditors is to ?audit the execution of duties by Directors?, the shareholder believes it is not appropriate for corporate auditors to be subject to the SOP, (iv) Revision of the Articles with regard to the persons eligible for the SOP: As stated above, corporate auditors are not appropriate targets for the SOP and the shareholder would like for it to be clearly stated in the Articles, (v) Revision of the Articles with regard to the exercise price etc. of the SOP: The article should clearly state the exercise price, the paid-in-amount, or the acquisition price must exceed the closing price of the day immediately preceding the day when terms and conditions are to be determined, (vi) Determination of remuneration for granting restricted stock contingent on stock price conditional on abolition of the SOP: The total number of shares to eligible Directors is limited to 1,500,000 shares which would account for a maximum of approx.

4.6% of total shares issued excluding treasury stock and the annual amount is limited to 600 million yen, (vii) Revision of the Articles with regard to cancelling of treasury stock: A situation where the Company continues to hold a large number of its own shares means that for shareholders, the shares could be diluted at any time but, the retirement of the treasury stock can contribute to the improvement of shareholder value hence, the articles should be amended to allow for a resolution, (viii) Cancel treasury stock: As stated above, the cancellation of treasury stock can contribute to increasing shareholder value.