On February 20,2024, Nippon Active Value Fund PLC started its activist campaign against Ebara Jitsugyo Co., Ltd., by submitting shareholder proposals to the agenda for the 85th Ordinary General Meeting of Shareholders. The proposals are as follows, (i) Revision of the amount of compensation under the restricted stock compensation plan, (ii) Acquisition of Treasury Stock, (iii) Amendment to the Articles of Incorporation regarding the number of outside directors. The company has opposed these proposals for the following reasons, (i) The proposal states that a restricted stock compensation plan should be introduced for all directors, including the members of the Audit Committee.

However, the company has decided not to include members of the Audit Committee as they are expected to audit the business execution of directors and to strengthen the audit function of management., (ii) The company believes that if the proposal is approved, the company?s financial resources for investment in growth will be undermined and the company?s medium to long term growth and improvement in corporate value may stagnate, which will damage the interests of its shareholders, (iii) The company stated that establishment of provisions of the proposal in Articles of Incorporation would limit the scope of director candidate selection and as a result hinder the optimal composition and effectiveness of the Board of Directors.