Letter Sent to Bunka Shutter

October 5, 2026

Rising Sun Management, an affiliate of Dalton Investments, has sent a letter to Bunka Shutter Co., Ltd. (“Bunka Shutter”).

In the letter, we outline a shareholder proposal that we are considering submitting at Bunka Shutter’s 2027 Annual General Meeting of Shareholders.

The proposal calls for Bunka Shutter to repurchase shares equivalent to 5% of total shares outstanding and use the acquired treasury shares for a restricted stock plan under which every full-time employee of Bunka Shutter and its consolidated subsidiaries (excluding temporary staff) would receive restricted shares equivalent to ¥500,000 in value.

We believe that enabling all employees who support the business on the ground to hold Company shares would more closely align their daily efforts to improve operations, quality, and customer service with their own financial interests. Employee ownership can help foster a stronger sense of involvement and encourage a longer-term perspective on value creation.

For further details of the proposal, please refer to the letter here.