Notice of Revisions to Dividend Forecasts (Dividend Increase)

OSAKA, Japan, April 24, 2025 - Shionogi & Co., Ltd.  (Head Office: Osaka, Japan; Chief Executive Officer: Isao Teshirogi, Ph.D.; hereafter "Shionogi") announced that it has made the following revisions to its dividend forecasts for the fiscal year ending March 31, 2025 (fiscal 2024; April 1, 2024 – March 31, 2025). The dividend forecasts were originally announced on August 30, 2024.

1.     Revisions to Dividend Forecasts

2.     Reasons for Revisions to Dividend Forecasts

Shionogi is committed to maximizing corporate value by promoting management measures that strike an optimal balance between growth investments and shareholder returns, allowing shareholders to experience mid- to long-term profit growth. In our ongoing medium-term management plan, STS2030, we aim to increase dividends steadily and stably in line with corporate value growth, using a shareholder return indicator of a dividend on equity (DOE) of 4% or more.

In the domestic business for fiscal year 2024, we achieved revenue stability throughout the year by providing patients with multiple acute respiratory infection treatments, including Xocova, a COVID-19 treatment drug, and of our influenza franchise, mainly Xofluza. Despite the extremely low prevalence of COVID-19 this winter compared to the previous year, the understanding of Xocova in medical settings has deepened, significantly expanding its market share. Additionally, the influenza franchise maintained and expanded its high market share, with sales increasing significantly during the major influenza outbreak this winter. As we have achieved the planned market share for both diseases, stable performance contributions are expected during future epidemic periods. We will continue to promote education to enhance early diagnosis and early treatment rates to promptly deliver the necessary treatments to patients during infectious disease outbreaks.

In the overseas business, sales of Cefiderocol grew both in existing markets and through expansion of the number of launch countries through partnerships, improving access to the drug. With the global sales expansion of Cefiderocol, sales revenue from overseas subsidiaries/exports is expected to reach a record high for the fourth consecutive year.

We have also actively invested in several promising development projects that are potential growth drivers. Particularly for Ensitrelvir, our COVID-19 treatment, (product name in Japan: Xocova), we have published results from two global Phase III clinical trials and are advancing discussions with regulatory authorities in Europe, the US, and Asia for manufacturing and marketing approval applications, while initiating a preventive indication application in the US. Our transition to a new growth phase is centered around the global expansion of sales of our proprietary products, including Ensitrelvir, Xofluza, and Cefiderocol

In addition to these efforts, sales of the HIV franchise by ViiV Healthcare Ltd. (hereinafter “ViiV”) have steadily increased, with royalties and dividends received from ViiV also expanding steadily. The market penetration of new long-acting formulations in the franchise, Cabenuva and Apretude, is progressing smoothly, with mid- to long-term growth expected.

Furthermore, during the current period, we implemented a stock split and partial amendment of the Articles of Incorporation associated with the stock split to improve the liquidity of our shares and expand our investor base.

As a result of the aforementioned progress, and comprehensively considering our current financial condition, and our EPS, DOE, ROE metrics, which are the key shareholder return-indicators in our STS2030 Revision, Shionogi plans to increase its year-end cash dividend by 4 yen per share to 33 yen per share. Together with the interim cash dividend, Shionogi will therefore pay annual cash dividends of 184 yen per share, an increase of 24 yen per share from the prior fiscal year before the stock split, and its annual dividend will have been increased for 13 consecutive years.

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