OTSUKA CORPORATION

<h3 class="smt_head2">3 [Dividend Policy]</h3>The Company recognizes the distribution of profits to shareholders as one of its most important management priorities. Our basic policy is to continue stable dividends in accordance with business performance, while taking into account the strengthening of our management foundation and the soundness of our financial position. Regarding the number of dividend payments per fiscal year, we have paid dividends once annually through the current period. However, beginning in the next fiscal period (December 2025), we plan to implement dividends twice per year: an interim dividend and a year-end dividend.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:12pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;">Based on this policy, regarding shareholder dividends for the current fiscal year: the dividend per share for the previous period (December 2023) was 135 yen. Taking into account the stock split, this equates to 67.50 yen per share. We have increased this by a net 12.50 yen to 80 yen per share (75 yen in regular dividend and 5 yen in commemoration of 1 trillion yen in sales), thereby returning profits to our shareholders who have provided their support. As a result, the dividend payout ratio for the current fiscal year is 61.9%.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:12pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;">The decision-making authority for dividend distributions at the Company is as follows: the Board of Directors for interim dividends and the Annual General Meeting of Shareholders for year-end dividends. The Company's Articles of Incorporation provide that interim dividends may be paid with a record date of June 30 each year by Board of Directors resolution.<p class="smt_text2" style="orphans:0;widows:0;text-align:justify;padding-left:12pt;padding-right:0pt;margin-top:0pt;margin-bottom:0pt;text-indent:9pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;">The dividend distribution for the current fiscal year is as follows: 
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</div><p class="smt_text1" style="orphans:0;widows:0;text-align:justify;padding-left:36pt;padding-right:16pt;margin-top:0pt;margin-bottom:0pt;text-indent:-27pt;font-family:'ＭＳ 明朝';letter-spacing:0pt;line-height:15pt;font-size:9pt;">(Note) The Company conducted a stock split at a ratio of 2 shares for each 1 ordinary share, effective April 1, 2024. Accordingly, the dividend per share for the current fiscal year is presented on a post-split basis. The dividend per share before considering the stock split would be 160 yen.

We view returning profits to shareholders as a key priority. Our basic policy is to continue stable dividends in line with our business performance, while strengthening our management foundation and maintaining sound financial health. Starting with the fiscal year ending December 2025, we plan to change our dividend frequency from once annually to twice annually, consisting of an interim dividend and a year-end dividend.

Fiscal Year	Type	Interim	Year-End	Total	Payout Ratio
FY2026	Forecast(2026/02/02)	50	45	95	58.9%
FY2025	Actual(2026/02/02)	45	45	90	53.1%
	Forecast(2025/02/03)	45	40	85	58.6%
FY2024	Actual(2025/02/03)	0	80	80	56.7%
	Forecast(2024/02/01)	0	70	70	55.7%
FY2023	Actual(2024/02/01)	0	135	135	53.9%
	Forecast(2023/02/01)	0	130	130	61.4%
FY2022	Actual(2023/02/01)	0	125	125	59.2%
	Forecast(2022/02/01)	0	125	125	64.7%
FY2021	Actual(2022/02/01)	0	120	120	57.0%
	Forecast(2021/02/01)	0	120	120	57.5%
FY2020	Actual(2021/02/01)	0	115	115	55.5%
	Forecast(2020/11/10)	0	115	115	-
FY2019	Actual(2020/11/10)	0	110	110	-

OTSUKA CORPORATION (4768) Dividends

Dividend Policy

Dividend per Share

Payout Ratio

Dividend Yield

Dividend History (Forecasts, Revisions, Actuals)