22/Dec/2025 － Japan Pure Chemical: Request for a Complete Overhaul of the Mid-Term Plan and the Establishment of a Special Committee

Hibiki Path Advisors (“we”) sent a letter dated December 9 to the Board of Directors and the Audit and Supervisory Committee of Japan Pure Chemical Co., Ltd. (“JPC” or the “Company”), one of our core portfolio holdings (the “Letter”), to protect and advance the shared interests of the Company’s shareholders.

Letter on Dec 9 (English)

Prior to this letter, we sent a letter dated August 1 to the same Recipients, clearly setting out the requests summarized below (the “Prior Letter”).

Prior Letter on Aug 1 (English)

A complete overhaul of the Medium-Term Management Plan, including:
- Clear, specific, and measurable KPI targets for the core businesses—covering revenue, gross profit, operating profit, and other critical performance indicators; and
- Decisive capital actions, including a clearly defined and accelerated timetable to unwind cross-shareholdings to the maximum extent possible.
Establishment of a Special Committee of external directors and independent third parties to evaluate strategic alternatives, including publicly listed versus privatization.
If the Company remains listed, bold measures to address excess capital through substantial share buybacks and increased dividend distributions.

It has now been more than four months since those requests, and we have seen no response, no disclosure, and no direction from the company. KPIs remain undefined. No Special Committee exists. There is still no accelerated capital-return policy. Meanwhile, as markets have risen, the company’s balance of investment securities has grown even larger. At the end of 2Q FY3/26, cash plus investment securities accounted for about 85.8% of total assets and roughly 100.8%¹ of net assets.

Accordingly, we reiterate our strong expectation that the Company promptly disclose the status of its review of our requests, along with clear deadlines for action.

If management continues to disregard corporate value, we will have no choice but to act. We are prepared to escalate by fully exercising our shareholder rights and running a public campaign. One option currently under active consideration is opposing certain director nominees at the upcoming 55th Annual General Meeting, expected on June 24, 2026², along with a public campaign supporting that opposition. We may also nominate our own candidates — both internal and external — for director positions.

We will continue to explore the most effective path toward maximizing JPC’s corporate value, and we appreciate the continued support of our fellow shareholders and the Company’s employees, who represent the foundation of its value.

¹ According to the Company’s FY3/26 2Q financial results, cash and deposits amounted to JPY 7,272,628 thousand, investment securities totaled JPY 8,416,891 thousand, total assets were JPY 18,277,195 thousand, and total net assets were JPY 15,566,345 thousand.

² Confirmed on December 9, 2025: the shareholder-meeting section of your corporate website (Japanese only)

The accuracy of the data and information collected in the preparation of this document is taken with great care, but the accuracy is not guaranteed. In addition, this document does not solicit applications for or recommend the sale of certain securities, or provide advice on investment, legal, tax, accounting, etc. In respect of information that has been prepared by Hibiki Path Advisors (and not otherwise attributed to any other party) and which appear in the English language version of this letter, in the event of any inconsistency between the English language version and the Japanese language version of this letter, the meaning of the Japanese language version shall prevail unless otherwise expressly indicated engagement amongst all shareholders.