Hibiki Path Advisors（”Hibiki” and “We”), through our customer accounts, are a shareholder of Kawai Musical Instruments Manufacturing Co. Ltd.,（”KAWAI”) and we have sent a letter “Proposal to Enhance Kawai’s Corporate Value” to the board of KAWAI on 8th May 2023.

We are interested not only in KAWAI’s upbeat business trajectory but also in its “brand value” and potential growth of it especially led by its grand piano brand “Shigeru Kawai”. However, unlike KAWAI’s well reputed position in the music and piano industry, capital market does not seem to fully reflect such value based on its current stock price valuation and thus we have made three proposals to the board in order to tackle the disconnect that lies between the current valuation and our view on its intrinsic value.

We, as one of the minority shareholders of KAWAI, are more than happy to continue to have a constructive dialogue with the people at KAWAI and to help achieve improved shareholder value for all shareholders.

This proposal letter does not constitute an offer, recommendation or solicitation to buy or sell any security or enter into any other transaction. Hibiki does not purport to provide any investment, financial, legal or other expert advice or recommendation in this document.

Cover Letter to Kawai Musical Instruments Manufacturing Co., Ltd.

Letter to Kawai Musical Instruments Manufacturing Co., Ltd. Summary of the letter to Kawai Musical Instruments Manufacturing Co., Ltd.(presentation video)