Palliser Capital Responds to Media Article Regarding Investment in Keisei Electric Railway

• Palliser releases presentation made to 13D Monitor Conference: “Keisei Electric Railway – a Unique Opportunity to Unlock Value and Catalyze Growth
• Presentation confirms Palliser’s 1.6% stake, and an extensive process of collaborative engagement with Keisei’s board of directors since August 2021
• Palliser “Three-Step Plan” intended to unlock $4.5BN of latent value, equivalent to 76% potential upside in Keisei stock
• Plan includes right-sizing Keisei’s stake in Oriental Land to eliminate value-sapping accounting distortion and enable ongoing value maximization

Palliser Capital (“Palliser”), the eighth largest shareholder of Keisei Electric Railway Co., Ltd. (9009 JT) (“Keisei”) with a stake of 1.6%, releases details of the presentation given to attendees of 13D Monitor’s 2023 Active-Passive Investor Summit in New York. Palliser’s presentation outlines a comprehensive set of proposals intended to address Keisei’s persistent undervaluation by unlocking $4.5 billion of latent value and enacting a suite of capital allocation, governance and investor relations reforms.

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Palliser’s “Three-Step Plan” includes proposals to:

1. Reduce Keisei’s stake in Oriental Land Co., Ltd., in order to resolve the mismatch between its reported value on Keisei’s balance sheet and its actual value
2. Adopt a capital allocation framework encompassing a focused investment strategy and enhanced shareholder return policy, in order to ensure optimal allocation of Keisei’s existing and future capital, in line with Tokyo Stock Exchange initiatives
3. Institute both best-in-class corporate governance, including increased board-level diversity, enhanced management alignment structures and the removal of advisory/cross-board appointments and improved investor communication policies

James Smith, Palliser’s Founder and CIO, said:

“Our team has been delighted to engage extensively with the board and management of Keisei over such a long period of time. We look forward to making further progress in our discussions with the company and to the achievement of an ‘all-around win’ outcome for all of Keisei’s stakeholders.”

Full details of the Presentation are outlined in the accompanying attachment.

About Palliser Capital

Palliser Capital is a global multi-strategy fund based in London. Our value-oriented investment philosophy is applied to a broad range of opportunities across the capital structure with a focus on situations where positive change and value enhancement can be achieved through thoughtful, constructive and long-term engagement with companies and across a range of different stakeholder groups. Palliser Capital is the eighth largest Keisei shareholder with a stake of 1.6%.

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