On June 1, 2023, Yaizu Suisankagaku Industry Co.,Ltd. stated in its press release that it had decided to oppose the shareholder proposals submitted by Nanahoshi Management Ltd. Proposal 1: Appropriation of surplus: The proposal contemplates an annual dividend equal to one-tenth of BPS, the Company has a distorted capital structure, adopting a capital application policy of storing profits as cash, the share buy-back?s only effect was an increase in share price volatility, activist expect the Company to refrain from share buy-backs until the valuation of the Company?s share price improves and to continue to provide shareholder returns of at least 10% DOE, the company opposes this proposal as it is a short-term perspective taking no account of the need for securing funds on hand, intends to appropriate for growth investments conducive to the Company?s future growth, as aspired in the Mid-term Plan, and the proposal is deemed not beneficial to increasing corporate value and common interests of shareholders, Proposal 2: Reversal of separate reserves, the separate reserve of up to 8.4 billion yen recorded in the Company?s non-consolidated balance sheet has no apparent use,the Company can expect to adopt a flexible managerial decision by transferring the separate reserve to retained earnings brought forward in advance, the Company resolved at a meeting of the Board of Directors held on May 19, 2023 to reduce separate reserve fund in its entirety, by ¥8.4 billion, and to increase retained earnings brought forward by the same amount, the Company believes that the objective of this proposal was satisfied by the said resolution of the Board of Directors and that there is no separate reserve fund to be reversed. Proposal 3: Appointment of one director (excluding director who is a member of the Audit and Supervisory Committee), the Candidate: Satoru Matsuhashi is a representative director of the activist and has extensive experience as a Japanese & European equity analyst and fund manager, The Company believes that having the Board of Directors comprising of Directors who have been proposed by the Company will be of benefit to increasing the Company?s corporate value and common interests of shareholders, the Company?s Board of Directors therefore opposes this proposal. Proposal 4: Partial amendment to the Articles of Association for the appropriation of surplus funds, Delete the following.

Article 33 (Decision-making body for dividends of surplus, etc.) of the current Articles of Association: ?The Company may determine the matters provided for in each item of Article 459(1) of the Companies Act, including dividends of surplus, by resolution of the Board of Directors, except as otherwise provided by law, The Company?s Board of Directors opposes this proposal. the activist requires the Company to stipulate in its Articles of Incorporation to join the UN Race To Zero Campaign, define a transition plan to net zero and implement the transition to net zero, the Company recognizes addressing climate change is a significant issue, but deciding on specific policy thereof is deemed a matter of business execution that is linked to the operating environment surrounding the Company, as well as its business strategy, the Company?s Board of Directors therefore opposes this proposal. Proposal 5: Partial amendment to the Articles of Association on climate change risk, the Company?s efforts to address climate change risks are limited to disclosing short-term targets (e.g., reducing CO2 emissions intensity by 1% year-on-year) in the annual environmental report.

Proposal 6: Request the abolition of the policy on large-scale purchases of the Company?s shares (takeover defense measures), the company should adopt a policy of expanding its shareholder value and substituting the high share price valuation for the current takeover defense measures, the activist request that the takeover defense measures introduced by the Company be abolished, the Company?s Board of Directors therefore opposes this proposal.