[Shareholder Proposal] Tenpos HD Proposes Director Appointment and New Shareholder Benefit Program to Maximize Kitazawa Sangyo's Corporate Value

Tenpos Holdings Co., Ltd. (HQ: Ota-ku, Tokyo; President: Atsushi Morishita; hereinafter 'Tenpos') announced that it has submitted a proposal to Kitazawa Sangyo Co., Ltd. (Securities Code: 9930; hereinafter 'Kitazawa Sangyo') regarding the appointment of one director and a partial amendment to the Articles of Incorporation to establish a shareholder benefit program, to be discussed at the Annual General Meeting of Shareholders scheduled for June 26, 2026.

As of March 31, 2026, Tenpos is a shareholder holding 7.80% (1,447,900 shares) of the voting rights in Kitazawa Sangyo. Tenpos has reached the decision to make this proposal as it believes that a fundamental management reform is necessary for the sustainable growth and maximization of corporate value of Kitazawa Sangyo.

### Background and Purpose of the Proposal Kitazawa Sangyo's current performance is stagnant, and Tenpos believes the company is not fully utilizing its potential. Tenpos CEO Atsushi Morishita has a proven management track record, having taken Tenpos public just five years after its founding and growing it to an expected revenue of 57 billion yen this fiscal year (its 28th year). Tenpos is confident that by integrating this exceptional management skill and Tenpos's 'new opening support know-how' with Kitazawa Sangyo's foundation, dramatic growth in sales and profit can be achieved.

### Details of Proposal Items 1. Appointment of One Director (Atsushi Morishita) Reason for proposal: To introduce powerful management leadership backed by a solid track record. By breaking through stagnant performance and reconstructing growth strategies, Tenpos aims to enhance corporate value to meet shareholder expectations.

2. Partial Amendment to the Articles of Incorporation (Establishment of Shareholder Benefit Program) Outline: A new provision will be added to the Articles of Incorporation to gift shareholder benefit vouchers to shareholders of record as of March 31 each year, usable at stores that have installed Kitazawa Sangyo's products. Reason for proposal: The goal is 'utility-based IR,' which goes beyond simple shareholder returns by directly linking shareholder visits to customer stores with increased sales for those customers, thereby building strong partnerships. According to Tenpos's track record, the introduction of a similar system increased the number of shareholders from approximately 3,500 to over 16,000 in one year, with the stock price rising by about 26%. This system is the best choice to correct current stagnant stock indicators and bring a 'win-win-win' situation for Kitazawa Sangyo, its shareholders, and its customers.

### Future Outlook In response to this shareholder proposal, Kitazawa Sangyo's Board of Directors has issued an acknowledgement stating that they will 'carefully consider and deliberate on the matter and announce their decision as soon as it is made.' Tenpos will continue to sincerely communicate the significance of this proposal to achieve the best outcome for all shareholders.