Hibiki Path Advisors Sent an Open Proposal Letter to MatsukiyoCocokara Co. (3088) on Potential Measures to Further Improve Corporate Value

Hibiki Path Advisors ("Hibiki") is a Singapore-based engagement investment company focusing on Japanese equities. Hibiki, through customer accounts, own shares of MatsukiyoCocokara & Co. ("MCC").

MCC was established on October 2021 with business integration between KK Matsumotokiyoshi Group and KK Cocokarafine Group, two major drugstore chains in Japan, with the aim to "become Asia's Number One drugstore offering health and beauty to people". KK Matsumotokiyoshi Group has strength in medical and cosmetics products and KK Cocokarafine Group has strength in prescription sales. We have been a long-term shareholder of KK Cocokarafine Group and have been actively engaging with the group. We continue to hold the shares after the integration and look forward to the ongoing engagement activities with the group.

Even amid difficult business conditions during the covid-19 spread, MCC's value has been rising in 2022 with materializing business synergies from the integration of the two groups, as well as due to tireless efforts by the management team and by all employees of MatsukiyoCocokara & Co. While we are extremely happy with the general progress, we view that MCC should aim higher and have sent a proposal letter to the board of MCC with request measures related to disclosures on strategic direction as well as the way to think about dividends, including the idea of quarterly dividends.

We urge the management team to consider this proposal thoroughly, which, we believe, is beneficial to all shareholders of MCC, including management, employees, and business partners. We are hereby publicizing the letter as we would also like other shareholders to consider these measures independently and utilize it in your respective discussion with the management of MCC.

(Letter to MatsukiyoCocokara & Co. on 05/01/2023)

http://www.hibiki-path-advisors.com/en/message/2023/post-3245/