Strategic Capital Announces Shareholder Proposals to Yellow Hat Ltd. and Plan to Launch Dedicated Website

Strategic Capital, Inc. (SC), through discretionary investment contracts including the Japan-Up fund, holds approximately 14% of the shares of Yellow Hat Ltd. SC points out that Yellow Hat's stock valuation has stagnated for a long time, with its PBR consistently underperforming TOPIX over the past 10 years.

To enhance shareholder value, SC has sent a document exercising its right to make shareholder proposals at Yellow Hat's Ordinary General Meeting of Shareholders scheduled for June. A dedicated website providing detailed explanations of the proposals' background will be launched on May 11, announced via SC's website (https://stracap.jp/).

Summary of Proposed Agenda Items: 1. Partial Amendment to the Articles of Incorporation regarding the Decision-Making Body for Dividends of Surplus: Change the decision-making body for year-end dividends to the General Meeting of Shareholders. 2. Appropriation of Surplus: Implement a dividend with a 100% payout ratio. 3. Revision of Compensation for Granting Restricted Stock to Directors (excluding outside directors): Introduce Yellow Hat's PBR as a performance metric for director stock compensation.

Strategic Capital aims to improve corporate and shareholder value through dialogue with management and the exercise of shareholder rights.