The distribution of profits to shareholders through stable and sustainable dividends is a central priority for Kyowa Hakko Kirin. Our dividend policy balances issues including internal capital required for growth, annual consolidated results, and the dividend payout ratio. We seek to improve capital efficiency through flexible, timely share repurchases. Kyowa Hakko Kirin allocates internal capital to research and development and capital expenditures that will contribute to enhancing future corporate value, and to expansion of the development pipeline and other investments that lead to new growth.

Based on this policy, Kyowa Hakko Kirin paid cash dividends per share of ¥25.00 for the year ended December 31, 2014, consisting of an interim dividend of ¥12.50 per share and a year-end dividend of ¥12.50 per share.

In addition, during Medium-Term Business Plan – 2013 to 2015 we are targeting stable dividends with a payout ratio of 40 percent of net income before amortization of goodwill.* Currently, we plan to pay cash dividends per share of ¥25.00 for the year ending December 31, 2015, consisting of an interim dividend of ¥12.50 per share and a year-end dividend of ¥12.50 per share.

*“Net income before amortization of goodwill” refers to profits prior to the deduction of amortization of the goodwill arising on the reverse acquisition in April 2008 (Kirin Pharma share transfer).