This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 15, 2024
News Release
Company name: Kanto Denka Kogyo Co., Ltd.
Representative: Jun’ichi Hasegawa, President(Securities code: 4047, TSE Prime Market)
Contact: Masanobu Shirokura, General Manager,
Public Relations & Investor Relations Dept.
(Phone: +81-3-4236-8804)

Discontinuance (Abolition) of Policy toward Large-Scale Purchase of Share Certificates, etc. of theCompany (Takeover Defense Measures)
At the Ordinary General Meeting of Shareholders held on June 29, 2006, Kanto Denka Kogyo Co., Ltd. (hereafter, the“Company”) resolved to adopt the Policy toward Large-Scale Purchase of Share Certificates, etc. of the Company(Takeover Defense Measures; hereafter, the “Response Policy”) and has subsequently reaffirmed the basic contents ofthat policy at five Ordinary General Meetings of Shareholders up to the present, with the approval of shareholders.
The Response Policy will expire at the conclusion of the 117th Ordinary General Meeting of Shareholders scheduledon June 27, 2024 (hereafter, “this Shareholders’ Meeting”). We have repeatedly given careful consideration to thatapproach in light the opinions of institutional investors and other shareholders in Japan and overseas, the latest trends intakeover defense measures and changes in the business environment, among other factors.
As a result, we hereby give notice of the resolution passed at the Board of Directors meeting held today to forego
updating the Response Policy and abolish it when it expires upon conclusion of this Shareholders’ Meeting. The Boardof Directors has also resolved to revise our “Basic policy on the way a person is to control the determination of financial
and business policies of the Company” (hereafter, the “Basic Policy on Control Over the Listed Company”), specified inArticle 118, Provision 3 of the Regulations for Enforcement of the Companies Act, as indicated in the addendum.
After the Response Policy is abolished, the Company will continue our efforts to secure and enhance corporate value
and, by extension, the common interests of shareholders over the medium and long term and will continue to takeappropriate steps to seek provision of sufficient information necessary for our shareholders to make appropriate decisions
on a person who is conducting or is attempting to conduct a large-scale purchase of the share certificates, etc. of theCompany. We will also disclose the opinion, etc. of the Company’s Board of Directors and endeavor to secure thenecessary time and information for shareholders to consider such a purchase, within the scope permitted in the FinancialInstruments and Exchange Act, the Companies Act, and related laws and regulations.

(Addendum)
Basic Policy on Control Over the Listed Company(1) “Basic policy on the way a person is to control the determination of financial and business policies of the Company”(hereafter, the “Basic Policy”)
The Company consents to the free purchase and sale of its shares as a publicly listed company. We therefore think thedecision on who should have control over the determination of the financial and business policies of the Company
should ultimately reflect the opinions of our shareholders. We also will not reject a large-scale purchase of the sharecertificates, etc. of the Company, provided that such a purchase is not unsuitable or insufficient from the perspectiveof securing and enhancing the corporate value of the Company and, by extension, the common interests ofshareholders over the medium and long term.
However, we cannot categorically state that there are no purchasers among those who initiate large-scale purchases
who do not provide sufficient information and time for the Company’s Board of Directors and shareholders todetermine whether or not that person is a suitable person to control determination of the financial and business policiesof the Company. In looking at the purpose of a large-scale purchase, we also cannot categorically state that there areno purchases who are unsuitable or insufficient from the perspective of being someone who would cause clear harmto the corporate value of the Company and, by extension, the common interests of shareholders, someone who would
effectively coerce shareholders to sell share certificates, etc. of the Company, or who is otherwise unsuitable orinsufficient for securing and enhancing the corporate value of the Company and the common interests of shareholders
over the medium and long term.
The Company’s Board of Directors thinks it is necessary for the person who controls determination of the financialand business policies of the Company to be a person who has a sufficient understanding of the Company’s financesand business and the sources of the Company’s corporate value, and who is capable of enhancing the corporate valueof the Company over the medium and long term. The Board of Directors thinks that an unsuitable large-scale takeoverbid and a person who engages in similar actions that could harm the corporate value of the Company and, by extension,
the common interests of shareholders in the manner stated above is unsuitable for being the person who controls
determination of the financial and business policies of the Company.
(2) Special initiatives that contribute to implementation of the Basic Policy
1) Management philosophy and source of the Company’s corporate value
Our management philosophy is “Through the quest for constant corporate growth and acquisition of optimum profits
while achieving harmony with nature, Kanto Denka is working with all its shareholders, users and employees tocreate a successful company and a sustainable society. To achieve this end, we are endeavoring to ensure our unique
technologies and superior services meet the requirements of our users and build a trusted company based on theprinciples of sincerity, creativity, prompt response and harmony with nature.” In other words, the Company’s goals
are to enhance corporate value and create a sustainable society, and we think building good relationships withshareholders, the local community, users, employees, and other stakeholders is the foundation for achieving thesegoals.
Moreover, the unique technologies we have created from sustained research activities are the source of theCompany’s corporate value and social value. We think our human resources who support technology and inventinnovative new technologies provide the foundation for that. Since the Company was founded in 1938, electrolysis,fluorination, chlorination, and organic and inorganic synthesis have been our core technologies. In particular, wehave continued to accumulate knowledge of hydrofluoric acid electrolysis technology for efficiently generating large
volumes of high purity fluorine and fluorine related technologies that are applied widely to battery materials,
pharmaceuticals and agrochemicals, and other areas, up to the present.
2) Medium-Term management plan
We formulate and steadily implement a medium-term management plan to enhance corporate value while adaptingto the business environment surrounding the Company.
In the current plan, we are aiming to provide a safe work environment with job satisfaction, support technologies
that are cutting-edge on a global stage with our superior, original products, and grow to become an innovative,
development-driven company to contribute to a sustainable society, based on a stable management foundation inorder to create the society we envision in 2030. More specifically, we are implementing a growth strategy centeredon fluorochemicals for semiconductors, and are pursuing portfolio transformation in each business segment andR&D using our core technologies. We are also working to increase capital efficiency, strengthen corporate
governance, and enhance human capital.
3) Corporate governanceWe endeavor to increase the independence and ensure the diversity of the Board of Directors to strengthen its
supervisory function.
Further, our company has established Principles of Conduct that transform the aforementioned management
philosophy into specific actions, as a guidepost for our daily business activities. We promote sustainability andcompliance through the activities of various committees chaired by the president and the Board of Directors monitors
the execution of such activities.
The Company will continue to strengthen corporate governance as the foundation for enhancing corporate value
through such initiatives.
(3) Initiatives to prevent the determination of financial and business policies of the Company from being controlled by aninappropriate person, in light of the Basic Policy
At the Ordinary General Meeting of Shareholders held on June 29, 2006, the Company resolved to adopt the Policy
toward Large-Scale Purchase of Share Certificates, etc. of the Company (Takeover Defense Measures; hereafter, the“Response Policy”), and has subsequently reaffirmed the basic contents of that policy at five Ordinary General
Meetings of Shareholders up to the present. We have repeatedly given careful consideration to the opinions ofinstitutional investors and other shareholders in Japan and overseas, the latest trends in takeover defense measures,changes in the business environment surrounding the Company, etc. As a result, the Board of Directors has decided
to forego updating the Response Policy and resolved to abolish it at the Board of Directors meeting held on May 15,2024.
After the Response Policy is abolished, the Company will continue our efforts to secure and enhance corporate
value and, by extension, the common interests of shareholders over the medium and long term and will continue totake appropriate steps to seek provision of sufficient information necessary for our shareholders to make appropriate
decisions on a person who is conducting or is attempting to conduct a large-scale purchase of the share certificates,etc. of the Company. We will also disclose the opinion, etc. of the Company’s Board of Directors and endeavor tosecure the necessary time and information for shareholders to consider such a purchase, within the scope permittedin the Financial Instruments and Exchange Act, the Companies Act, and related laws and regulations.
(4) Board of Directors’ decisions on the initiatives in (2) and (3), above, and the reasons for those decisions
To prevent a person who is inappropriate in light of the Basic Policy from controlling the determination of thefinancial and business policies of the Company, the Company thinks it is important to first enhance the corporate
value of the Company through the initiatives described in (2).
As stated in (3), the Company will also take appropriate steps regarding a person who is initiating or is attempting
to initiate a large-scale purchase, within the scope permitted under the laws and regulations. However, these steps
will be taken to secure sufficient information and time for shareholders to consider whether or not to accept a largescale purchase, and to secure the common interests of shareholders.
The above initiatives are therefore aligned with the Basic Policy and their purpose is not to harm the common
interests of shareholders or maintain the position of Company officers.