Santen Pharmaceutical disposes of treasury shares for performance incentives

Santen Pharmaceutical Co., Ltd. will dispose of 57,909 treasury shares of common stock on September 30, 2025, at JPY 1,600.5 per share, totaling JPY 92,683,353. This disposal is part of the company's post-delivery type performance-linked stock remuneration plan, specifically the Performance Share Unit (PSU) scheme, which rewards non-outside directors and corporate officers for their contributions. The share price is based on the closing price on September 2, 2025, for its common shares on the Tokyo Stock Exchange Prime Market.

The remuneration is based on performance during the FY2022-FY2024 period, with a payout ratio of 142.6%. This ratio was determined by a 60.6%ile performance in relative Total Shareholder Return (TSR) and a 75-point score on Dow Jones Sustainability Indices. Recipients include two directors (excluding outside directors) receiving 11,918 shares, four corporate officers receiving 18,529 shares, and two leavers receiving 27,462 shares.

The PSU plan and the preceding Restricted Stock plan aim to provide long-term incentives and align executive interests with shareholder value. The introduction of the Restricted Stock Unit (RSU) system, a post-delivery type stock-based remuneration system, was approved at the 113th Annual General Meeting of Shareholders on June 24, 2025, to replace the Restricted Stock-Based Remuneration System from fiscal year 2025 onwards.