Hibiki Path Advisors (“Hibiki” and “We”), through our customer accounts, are a shareholder of JAPAN PURE CHEMICAL CO., LTD.（”JPC”) and we have sent a shareholder proposal to JPC on 14th April 2023, which was disclosed by the company with its “against” board opinion on 19th April 2023. Here, we would like to explain the background of our proposal.

We, as a minority shareholder, have been engaging with JPC and suggesting them on ways to maximize corporate value. We are very fond of their quality business and are willing to continue to support them on their paths to maximization of corporate value.

However, sadly, there was a wide difference in point of view on the approach to capital allocation and Balance Sheet management along these years, and so we are making a shareholder proposal for the AGM in June 2023. We hope all shareholders to digest our proposal and support our view in order to help JPC to maximize its corporate value. We are sad to see the management not being progressive enough to understand our views, and we hope other shareholders agree to our view. We thank you for your time and understanding in this shareholder proposal. As you can see, it is meant to “help” JPC break its own barrier.

We also attach our presentation made to the management in February 2023.

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.

Shareholder proposal for JAPAN PURE CHEMICAL CO., LTD.(Only in Japanese)

Shareholder proposal explanation material by Hibiki

【Shareholder proposal explanation video】
Shareholder proposal explanation video about JAPAN PURE CHEMICAL CO., LTD.

【Reference】 20/Feb/2023
Discussion material for JAPAN PURE CHEMICAL CO., LTD.