Shareholdings

Information on shares held by the Shionogi Group and the purpose of the shareholdings are described in “Part I Corporate Information, IV Status of Company, 4. Corporate Governance, (5) Shareholdings” of the Securities Report for the 157th Period (from April 1, 2021 to March 31, 2022).

For your information (in Japanese) : pages 57 to 60 of the Securities Report for the 157th Period(Fiscal Year Ended March 2022).

The English translation of the relevant pages is as follows;

(5) [Status of Shareholding]

(i) Standards and approach toward classification of invested shares

The Group shall only hold shares of companies if management judges that holding the shares will increase the Group’s corporate value and contribute to the sustainable enhancement of corporate value from the two perspectives of economic rationale and strategic validity. Therefore, the Group does not hold shares for passive investment purposes.

(ii) Invested shares held for purposes other than passive investment

a. Shareholding policy and method of verifying rationale of holding, and details of verification by Board of Directors, etc. concerning holding of individual shares

The management of the Group shall judge the appropriateness of holding from the perspectives of economic rationale and strategic validity. Each year, the Board of Directors conducts a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings.

b. Number of stocks (issues) and balance sheet amount

	No. of stocks (Issues)	Total balance sheet amount (Million yen)
Unlisted shares	45	9,055
Shares other than unlisted shares	19	38,148

(Stocks that increased in the number of shares during the fiscal year under review)
	No. of stocks (Issues)	Total purchase cost for the increase in shares (Million yen)	Reason for the increase in shares
Unlisted shares	5	2,113	The shares were newly acquired since management judged that holding the shares will increase the Group’s corporate value and contribute to sustainable enhancement of corporate value.
Shares other than unlisted shares	-	-

(Stocks that decreased in the number of shares during the fiscal year under review)
	No. of stocks (Issues)	Total sale value for the decrease in shares (Million yen)
Unlisted shares	1	0
Shares other than unlisted shares

c. Information on number of shares and balance sheet amount of specified investment shares and deemed holding shares

Specified investment shares
Stock	Fiscal year under review	Previous fiscal year	Purpose of holding, quantitative effects of holding, and reason for the increase in shares	Holding of Shionogi shares
	No. of shares	No. of shares
	Balance sheet amount (Million yen)	Balance sheet amount (Million yen)
Suzuken Co., Ltd.	3,256,696	3,256,696	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	11,821	14,085
Toho Holdings Co., Ltd.	3,500,112	3,500,112	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	6,475	7,105
Sumitomo Mitsui Financial Group, Inc.	1,643,810	1,643,810	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	6,422	6,586
StemRim Inc.	4,650,000	4,650,000	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	3,775	3,845
Medipal Holdings Corporation	1,271,605	1,271,605	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	2,562	2,700
Kissei Pharmaceutical Co., Ltd.	914,000	914,000	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	2,335	2,239
Ono Pharmaceutical Co., Ltd.	344,095	344,095	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	1,054	994
Kaneka Corporation	266,600	266,600	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	945	1,213
OncoTherapy Science, Inc.	7,300,000	7,300,000	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	503	897
AnGes, Inc.	1,186,800	1,186,800	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	426	1,267
Sumitomo Mitsui Trust Holdings, Inc.	105,210	105,210	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2020, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	420	406
Vital KSK Holdings, Inc.	475,000	475,000	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	349	374
FunPep Co., Ltd.	1,095,200	1,095,200	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	252	519
HOKUYAKU TAKEYAMA Holdings, Inc.	367,530	367,530	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	Yes
	242	277
Nomura Holdings, Inc.	424,568	424,568	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	218	246
Resona Holdings, Inc.	416,968	416,968	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	218	193
MS & AD Insurance Group Holdings, Inc.	21,811	21,811	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	86	70
Senshu Ikeda Holdings, Inc.	203,725	203,725	The Shionogi Group holds shares in the company, which is one of the Group’s financial institution, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	35	36
The Royal Hotel, Ltd.	654	654	The Shionogi Group holds shares in the company, which is one of the Group’s business partners, to maintain and enhance business relations. In May 2022, the Board of Directors conducted a comprehensive verification of the purpose, benefits and/or risks associated with holding, capital costs and other aspects regarding individual cross-shareholdings, and confirmed the economic rationale and strategic validity.	No
	0	0

Note: The method of verifying the rationale of the holdings is described, since it is difficult to state the quantitative effects of the holding as the transaction amount, etc. are undisclosed information.

(iii) Invested shares held for passive investment purposes

Not applicable.

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.