Notice of Distribution of Retained Earnings

Chugai Pharmaceutical Co., Ltd. announced that at the meeting of its Board of Directors held today, it resolved to propose the dividend of retained earnings with a record date of December 31, 2025, to the 115th Annual General Meeting of Shareholders scheduled to be held on March 26, 2026, 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, 2025, Chugai achieved an increase in Core net income for the ninth consecutive fiscal year, which resulted in Core EPS increasing by 13.6% 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,” the year-end dividends for the fiscal year ended December 31, 2025 are planned to be ¥147 per share (a regular dividend of ¥72 per share and a special dividend for the company’s 100th Anniversary of ¥75). As a result, the annual dividend will be ¥272 per share (a regular dividend of ¥122 per share and a special dividend for the company’s 100th Anniversary of ¥150), and the Core dividend payout ratio is 99.3% (an average of 54.9% for the past five years).

For the following fiscal year ending December 31, 2026, Chugai expects annual dividends of ¥132, including interim dividends of ¥66. As a result, the Core dividend payout ratio for 2026 is expected to be 44.7% (54.7% on a five-year average basis).

(For reference) Contents of annual dividends: