Shareholdings

Of the unlisted shares not described above, the shares of ViiV Healthcare Ltd. (hereafter, “ViiV”), which Shionogi holds through its European subsidiary Shionogi B.V., were acquired following a revision of the agreement with ViiV in October 2012. In the framework that was agreed upon with ViiV, the Shionogi Group transferred its rights to the anti-HIV drugs that was being developed by the ViiV-Shionogi joint venture to ViiV in return for a 10 percent equity stake in ViiV. The Shionogi Group also retained rights to royalties at a fixed percentage of sales of the anti-HIV drugs. The Shionogi Group holds ViiV shares for the business purpose of participating in ViiV management as a shareholder, and contributing to the treatment of HIV patients and the prevention of the disease, as well as for the purpose of ensuring medium- to long-term revenues through dividend income from its shareholdings.