Notice of Distribution of Retained Earnings

Chugai Pharmaceutical Co., Ltd., announced that the Company resolved at the meeting of its Board of Directors held today to distribute retained earnings with the record date being December 31, 2024, as described below.

1. Contents of Dividends

2. Reasons for the Revision

Taking into account strategic funding needs and earnings prospects, Chugai sets a target for consolidated dividend payout ratio of 45% on average in comparison with Core EPS, with an aim to continuously provide a stable allocation of profit to all shareholders.

In the fiscal year ended December 31, 2024, Chugai achieved an increase in Core net income for the eighth consecutive fiscal year, which resulted in Core EPS increasing by 19.0% year on year.

Reflecting the favorable results and based on our principles of “a stable allocation of profit” and “aiming for a consolidated dividend payout ratio of 45% on average in comparison with Core EPS,” year-end dividends for the fiscal year ended December 31, 2024 are planned to be ¥57 per share. As a result, the annual dividend per share will be ¥98 per share, and the Core dividend payout ratio is 40.6% (an average of 40.3% for the past five years).

For the following fiscal year ending December 31, 2025, Chugai expects annual dividends of ¥100 in regular dividends (interim dividends of ¥50 and year-end dividends of ¥50) and ¥150 as special dividends for the company’s 100th anniversary (interim dividends of ¥75 and year-end dividends of ¥75) for a total of ¥250 per share. As a result, the Core dividend payout ratio for 2025 is expected to be 100.0% (54.1% on a five-year average basis).

(For reference) Contents of annual dividends: